Policy Research Paper No 31

The Social Security Review
Background/Discussion Paper No. 11
Trends in the Disposable Incomes of

Australian Families
1964-65 to 19S5-S6
Social Security Review

Department of Social Security
PO Box 1
WODEN ACT 2606
Trends in the Disposable Incomes of
Australian Families
1964-65 to 19S5-S6
Jim Moore and Peter Whiteford
Research Paper No. 31

Policy Review and Co-ordination Branch
Development Division
Department of Social Security
December 1986
This series of background and discussion papers incorporates
work undertaken as part of the Social Security Review.
The papers are intended to provide background research and
other information which will form the basis for discussion and
consideration of various available options for reforming the
social security system.
The views expressed in these papers are those of individual
authors and are not necessarily those of the Social Security
Review, the Department of Social Security or the Minister for
Social Security.
111
Jim Moore works in the Policy Review and Co-ordination Branch
of Development Division. Department of Social Security,
Canberra.
Peter Whiteford. formerly of the Policy Review and
Co-ordination Branch of Development Division, is at the Social
Welfare Research Centre, University of New South Wales.
The authors would like to thank Deborah Atkinson for her

considerable help in typing this paper.
iv
TABLE OF CONTENTS
Page
SUMMARY , iii
1 INTRODUCTION 1
2 CHANGES TO THE TAX-TRANSFER SYSTEM - 1964-65 TO 1985-86 .. 3
2.1 Changes in the Social Security System 3

New Payments 3
Rates of Pensions and Benefits 4
Means and Income Tests 5
Taxation of Pensions and Benefits 6
External Factors 8
Summary 9
2.2 Changes in the Personal Income Tax System 10
Rate Scales , 11
Deductions/Rebates for Dependants 14
Summary . 15
3 TRENDS IN REAL DISPOSABLE INCOMES , 17
3.1 Income Components 19

3.2 Taxation Components , 20
3.3 Changes in Real Disposable Incomes 23
Pensioners and Beneficiaries 23
Wage and Salary Earners 26
3.4 Summary of Trends . 28
4 SCHEDULED CHANGES FOR 1986-87 AND 1987-88 32
NOTES 34
REFERENCES . 35
APPENDICES ,, 39
A SOCIAL SECURITY OUTLAYS AND NUMBERS OF RECIPIENTS , 41

B COMMONWEALTH TAXATION REVENUE , 45
C SOCIAL SECURITY PAYMENTS ,, 49
D AVERAGE WEEKLY EARNINGS , 59
E TAXATION COMPONENTS , 63
F DISPOSABLE INCOMES , 75
v
SUMMARY
The Minister for Social Security announced, in December 1985. a
major review of social security policy to take place during
1986 and 1987. This review is focusing on policy in three
areas; family assistance, assistance for people of workforce
age and retirement income arrangements. One of the primary
tasks of the family assistance component is the evaluation of
the adequacy and appropriateness of the present structure of
assistance for families. This paper is a resource document for
that component. As such, the paper brings together information
on social security payments and taxation and the impact of
these two on the disposable incomes of various family types.
The information covers the period 1964-65 to 1985-86 allowing
the current position of families to be considered in a broader
frame of reference.
The paper undertakes an analysis of trends in disposable

incomes of families at various income levels over the period
1964-65 to 1985-86. "Disposable income" is income from
earnings and/or social security (including family allowances)
less taxes which are net of any deductions and rebates for
dependants. The income levels are maximum pension and benefit
rates and 50. 100 and 200 per cent of average weekly earnings
(AWE). In the most general terms the analysis indicates
significant percentage increases between 1964-65 and 1985-86 in
the real disposable incomes of all groups studied. These
overall increases were not uniform among all groups; the
disposable incomes of pensioners, beneficiaries and low income
families increased, in percentage terms, somewhat more than did
the disposable incomes of higher income families. The actual
dollar increases, on the other hand, were considerably greater
for higher income families.
However, within the whole period there has been significant
variation both among the groups studied and between various
shorter periods. The variations since 1976-77 are particularly
relevant when considering how families with children have
fared. The most notable of these are:
the real disposable incomes of pensioners and beneficiaries
with children declined substantially (up to 2.1 per cent
per year) between 1976-77 and 1982-83, primarily because of
the real declines in additional payments for children of
pensioners and beneficiaries;
pensioner, beneficiary and other low income families with
children had substantial percentage increases in real
disposable incomes (up to 3.3 per cent per year) between
1982-83 and 1985-86. primarily because of ad hoc increases
in additional payments for children and the introduction of
family income supplement;
despite the large real increases in additional payments for
children since 1982-83, they have not been sufficient to
redress, in all cases, the earlier declines in real
disposable incomes of families. This is particularly so
for larger families and sole parent families; and
vi
generally, families with children and who are outside the
pension/benefit/family income supplement systems have fared
less well than those with no children primarily because of
the large declines in the real value of family allowances
since 1976-77 (3.8 per cent per year) and tax rebates since
1982-83 (up to 4.0 per cent per year).
The statistical appendices detail, for each year of the period
1964-65 to 1985-86. information on the tax and social security
systems. including social security outlays. tax revenues,
social security payment rates and values of dependent
deductions and rebates. The appendices also contain
information on the disposable incomes of various groups. As
well as supporting the analysis in the paper, the tables in the
appendices can be used to develop further analysis of trends in
families' disposable income.
vii
1 INTRODUCTION
This paper presents an examination of changes over time in the

financial position of families with children (and especially of
pensioners and beneficiaries with children) relative to other
members of the community. Movement in rates of assistance in
both the taxation and social security systems are considered.
The interactive effects of the tax-transfer systems have been
the subject of a number of research papers published by the
(1)
Department of Social Security in recent years . The
issue has also been of considerable interest to other
researchers (2) and was an area of concern in the debate
surrounding the 1985 National Taxation Summit. Previous
Departmental papers discuss the importance of examining the
combined effects of the tax and social security transfer
systems, so that when policy changes to either system are
considered the unintended effects of their interaction can be
avoided and the distributional implications and net costs of
changes are clearly identified.
The present paper expands on previous work and looks
specifically at the ways in which the growing interaction of
the tax-transfer systems has affected the distribution of
incomes.
Put rather simply, the disposable incomes of individuals and

families can be said to be directly determined by the following
factors:
gross private income - from, for example. wages and

salaries. self-employment. savings or investment. and
inter- or intra-family transfers;
tax-transfer payments - for example, family allowances,
Social Security pensions and benefits, Veterans' Affairs
pensions, and education and training allowances; and
income tax payable - which is determined by the level of
taxable income (including taxable pensions and benefits)
and the structure of the personal income tax system - the
differing tax rates on different income brackets, and
taxation deductions and rebates.
Trends in the real disposable incomes of individuals and

families are determined therefore by trends in private incomes,
movements in prices, and by Government policy changes which
affect the level and rate of withdrawal of income security
transfer payments, the tax brackets and rates, and rebates and
deductions in the personal income tax system.
This paper provides a detailed description of changes in the
tax-transfer system and how they have affected different types
(3)
of families since 1964-65. This analysis compares
trends in the real disposable incomes (4) of various family
types at different levels of income - maximum pension and
benefit rates, and 50. 100 and 200 per cent of average weekly
earnings (AWE) (5).
1.
Before turning to the substance of the paper, the scope of this
analysis should be emphasised. Richardson (1979) commences her
review of "Income Distribution. Poverty and Redistributive
Policies" by noting that:
Every economic change involves some impact on the
distribution of income and most probably also on the
degree of inequality. In this sense the entire
Australian economic discussion over the last decade
could be the subject of this survey. Since such an
approach is plainly impractical, the topic will be
interpreted more narrowly ...
The same caveat applies here. Perhaps most importantly, the
present analysis involves a comparison of different units
(single people, married couples and families with children) at
given levels of income. It is. therefore, not a complete
analysis of the redistributive effects of movements in taxation
rates, tax deductions/rebates and rates of social security
assistance. Analysing shifts in the proportion of income units
or families within each income "class" (whether because of
unequal initial positions or from changes in wage rates,
aspects of the social wage or workforce participation) would
require detailed time series data on family incomes. The
series of income distribution surveys conducted by the
Australian Bureau of Statistics does not cover the entire
period investigated here and is not entirely consistent in its
presentation of data on income unit or family incomes, nor does
it provide sufficiently detailed information for the scope of
the present analysis (6). In this sense, the paper provides
a basis for evaluating the nominal redistributive effects of
changing Government policies.
In addition, in analysing the effects of public policies, the
paper concentrates on the social security and personal income
taxation systems as two key areas of Government activity
relevant to the analysis of trends in the distribution of
incomes. Other aspects of the taxation system, wages policy
and assistance other than the cash transfers administered by
the Department of Social Security also have important impacts
on the distribution of incomes, but do not generally have
income redistribution as a specific goal.
2.
2 CHANGES TO THE TAX-TRANSFER SYSTEM; 1964-65 TO 1985-86
2.1 Changes in the Social Security System

Both the social security and personal income tax systems have
undergone very significant developments over the past twenty
years. Some idea of the scope and significance of the changes
that have occurred in the social security system since 1964-65
can be given by the growth in expenditure and in the number of
people receiving pensions and benefits since that time. These
changes are summarised in Appendix A.
In brief, in 1964-65 expenditure on social security cash
payments amounted to 334.6 million pounds ($3.3 billion in
1985-86 terms). At 30 June 1965 there were a total of some
826 000 pensioners and beneficiaries receiving payments from
the then Department of Social Services, of whom some 26 700
were in receipt of unemployment, sickness or special benefits.
Nearly 1.6 million families were receiving child endowment in
respect of 3.7 million children.
By contrast, in 1985-86 expenditure on social security cash
payments amounted to $15.1 billion. At 30 June 1986 there were
2.7 million pensioners and beneficiaries, of whom 654 000 were
in receipt of unemployment, sickness or special benefits.
Family allowances were paid to nearly 2.2 million families, in
respect of 4.2 million children.
An important influence on this growth in the scope and cost of
the social security system has been the introduction of major
legislative and policy changes since 1964-65. These have
included:
the introduction of new payments and extension of
eligibility for existing pensions and benefits;
increases in rates and introduction of automatic indexation

of most basic pension and benefit rates;
numerous changes in the pensions' means/income test and in

the taxation treatment of payments; and
changes in assistance for families with children.
New Payments
Throughout the period 1964-65 to 1985-86 there were a number of
changes to eligibility conditions which extended payments to
selected additional groups. There were also a number of new
programs introduced. particularly in the mid 1970s. The
extensions of payments and the new programs introduced include
the following. (7)
3.
1967-68 - Sheltered employment allowance was introduced.
1970-71 - Supplementary allowance (rent assistance) became
payable to sickness beneficiaries who were in receipt
of sickness benefit for 6 consecutive weeks or longer.
1973-74 - Supporting mothers benefit was introduced for women
who had the care of a child but were not entitled to
a class A widows pension or other Commonwealth
pension after six months.
- Double orphans pension was introduced.
1974-75 - Handicapped childs allowance was introduced.
1976-77 - Family allowances were introduced in place of child
endowment and tax rebates for children.
1977-78 - Supporting parents benefit replaced supporting
mothers benefit extending the payment to male sole
parents.
1982-83 - The six month qualifying period for supporting
parents benefit was removed.
- Mobility allowance was introduced.
1983-84 - Family income supplement was introduced.
- Spouse carers pension was introduced.
1984-85 - Mothers/guardians allowance become payable to single
beneficiaries with children.
- Remote area allowance was introduced.
1985-86 - Carers pension was introduced subsuming spouse carers
pension.
- Multiple birth payments were introduced.
- Rent assistance become payable (although at a lower
rate than that for pensioners and sickness
beneficiaries) to adult unemployment and special
beneficiaries who had been in receipt of benefit for
six months or longer.
Rates of Pensions and Benefits

There have been substantial increases in the basic rates of
pensions and benefits over this period. Some nominal increases
in the value of pensions were made in the 1960s, but no
increases in the value of benefits occurred until 1969-70. when
significant increases were provided. Increases in pension and
benefit rates during the 1970s were, in part, related to the
increases in the Consumer Price Index (CPI).
4.
However, between 1971 and 1975 there were large adjustments
which resulted in rates increasing much faster than prices and
AWE. Since November 1975 most basic rates of pensions and
benefits have been increased in accordance with increases in
the CPI. Appendix C provides details on when rates of major
payments changed along with corresponding details on actual
annual amounts paid across the period.
In November 1976 automatic, twice-yearly indexation of pension
and benefit rates was introduced, providing for increases in
May and November of each year on the basis of the movement in
the CPI over the six-month period to the previous December and
June quarters respectively. These indexation provisions have
generally not covered the following basic rates:
unemployment benefit for persons aged 18 years or more
without dependants, from which the provisions were
withdrawn in 1978 - indexation was restored for this
payment from May 1984 but was again withdrawn for those
aged 18 to 20 years in 1985 (8);
unemployment, sickness and special benefit for single
persons aged 16 to 17 years (8); and
from 1978 the then free-of-income-test age pension for
persons 70 and over.
Also additional payments (additional pension/benefit for
children, mothers/guardians allowance and rent assistance) are
not covered by indexation. These rates are reviewed in the
context of each Budget.
Means and Income Tests

The pensions means test (on income and assets) which was in
operation at the begining of the period has undergone
substantial changes over the last two decades.
1969-70 - A tapered means test was introduced, the rate of
withdrawal above the free area being reduced from 100
to 50 per cent.
1972-73 - The free areas (the amounts of income or property a
person could have without incurring a reduction in
pension) were doubled.
1973-74 - A free-of-means-test age pension became payable to
persons aged 75 years and over.
1974-75 - The free-of-means-test age pension was extended to
persons aged 70 to 74 years.
1976-77 - The means test became a test on income alone.
1978-79 - The income test was reimposed on age pensions for the
"over 70's" but only in respect of pension increases.
5.
1982-83 - The free areas were increased by about 50 per cent.
1983-84 - A special income test was imposed on the
free-of-income-test component of age pensions paid to
the "over 70s".
1984-85 - An assets test was introduced to operate in tandem
with the income test on pensions.
The benefits income test (which has never included a property
component) remained largely unchanged during the 1960s and
1970s, with small free areas and a 100 per cent benefit
withdrawal rate above these free areas. More significant
changes occured in the 1980s.
1969-70 - Free areas were increased by 50 percent.
1980-81 - A two tiered income test was introduced with a
withdrawal rate of 50 per cent operating over a range
of private incomes above the free area. The 100 per
cent withdrawal rate remained but it cut in above the
50 per cent withdrawal zone.
1982-83 - Both the free areas and the range of private incomes
over which the 50 per cent withdrawal rate operated
were increased.
1983-84 - Both the free area and the range of private incomes
over which the 50 per cent withdrawal rate operated
were increased by $10 per week.
1985-86 - The free area was increased by 50 per cent.
Taxation of Pensions and Benefits

In 1964-65 pensions and benefits were exempt from tax. This
remained so until the 1970s. Since then there have been
several changes affecting the tax status of pensions and
benefits.
1973-74 - Pensions paid to people of age pension age were made
taxable. This was done in conjunction with the
abolition of the means test for persons aged 75 years
and over.
1976-77 - Most pensions and benefits payable to persons below
age pension age were made taxable. The major
exemption was invalid pension. Subjecting pensions
and benefits to tax substantially reduced the extent
to which it was possible to derive more in disposable
income while in receipt of pension or benefit than in
employment.
6.
- Additional payments for beneficiaries (additional
benefit for children and rent assistance) also become
taxable. However additional payments for pensioners
(additional pension for children, mothers/guardians
allowance and rent assistance) remained exempt from
tax.
1983-84 - Additional payments to beneficiaries were exempted
from tax. This reduced, and in many cases removed,
the tax liabilities that would otherwise have been
incurred by full year beneficiaries who received rent
assistance and/or additional benefit for children.
In addition to the changes to the tax status of payments there
were a number of changes made to provisions in the tax system
which were designed to provide assistance specifically for
pensioners and beneficiaries. In 1964-65 there was an age
allowance which provided exemption from tax for persons of age
pension age whose taxable income was up to levels somewhat
higher than the general tax threshold. Shading-in arrangements
quickly removed the benefits of the age allowance and subjected
aged people to full taxation once taxable incomes exceeded the
exemption level. The allowance was designed to prevent
overlaps of pension means tests and taxation which would have
otherwise led to effective tax rates in excess of 100 per
cent. The level of the exemption was varied, when necessary,
in subsequent years to prevent overlaps that could have arisen
with increases in pension rates. From 1969-70 onwards, there
have been a number of structural changes to provisions designed
specifically for pensioners and beneficiaries.
1969-70 - The single shade-in rate on the age allowance was
replaced with a tiered arrangement of several
different rates. This provided a more graduated
return to full taxation and was introduced in
conjunction with the tapered means test.
1973-74 - The age allowance was replaced with an income tested
age rebate. At this time pensions payable to aged
persons became taxable and the age rebate was
required to protect aged pensioners with little or no
income other than pension from paying tax.
1975-76 - With the introduction of new taxation arrangements,
the age rebate was abolished. Its role of protecting
pensioners with little or no income other than
pension from paying tax was taken over by the general
concessional rebate (and the tax threshold which
replaced the general concessional rebate in 1977-78).
1982-83 A pensioner rebate was introduced. By this time,
annual rates of pensions, which were increasing at
faster rates than tax thresholds, were almost
equivalent to tax thresholds for single people. This
rebate was required to protect pensioners with little
7.
or no income other than a taxable pension, from
paying tax. (Unlike the previous age rebate, which
was restricted to persons of age pension age, any
person in receipt of a taxable pension could claim
the pensioner rebate.)
1984-85 Rebates for beneficiaries, similar to those for
pensioners but of lower value, were introduced. The
annual rates of some basic benefit payments were now
above the tax threshold and without the rebates, full
year beneficiaries with no other income throughout
the year would have faced a tax liability on their
benefit payment.
At no time throughout the period being studied have pensioners
with little or no income other than their pension paid tax.
Initially this was ensured through the tax exempt status of
pensions. Once this tax exempt status was removed the variety
of mechanisms outlined above have been employed to maintain
protection from tax.
However, when benefit payments became taxable in 1976-77 some
full-year beneficiaries with no income other than benefit could
face end of year tax assessments. The size of the tax
liabilities faced by full-year beneficiaries and the proportion
of beneficiaries affected increased in subsequent years because
increases in annual rates of most benefits were at rates faster
than increases in tax thresholds. While for most years the
basic benefit rates were not sufficient to attract tax,
beneficiaries who received taxable additions such as rent
assistance and additional benefit for children (especially for
several children) did become subject to tax. This situation
was relieved in March 1984 when additional payments to
beneficiaries were again exempted from tax. The introduction
of beneficiary rebates for the 1984-85 tax year and their
increase in the next year have provided protection from tax for
the taxable base rates which by that time exceeded relevant tax
thresholds in many cases.
In the period from 1976-77 to 1983-84, significant tax
liabilities could also be faced by de facto married couples. A
beneficiary with a de facto spouse received the same benefit
payment as a beneficiary with a de jure spouse but, at least in
cases where there were no children, the beneficiary with the de
facto spouse was taxed as a single person. He or she could not
claim the additional protection of the dependent spouse
rebate. In 1984-85 entitlement to the dependent spouse rebate
was extended to taxpayers contributing to the maintenance of a
de facto spouse. This removed the very large tax liabilities
faced by beneficiary de facto couples.
External Factors
Apart from these policy factors. the taxation and social
security systems and their clients have also been influenced by
various social and economic changes.
8.
Inflation has had a major effect on the growth in social
security expenditures. While the real growth in expenditures
between 1964-65 and 1985-86 has been about 350 per cent, the
nominal increase is 2150 per cent. Most of the real growth in
levels of payment occurred between the late 1960s and the mid
1970s. In looking at trends in disposable incomes, a most
important factor has been Governments' reactions to inflation -
since 1976 the basic rates of most pensions and benefits have
been automatically indexed by movements in the CPI. Because
some payments (notably unemployment benefit for single adults,
unemployment and sickness benefits for juniors, and additional
payments for children and sole parents) have not kept pace with
inflation, the distribution of real disposable incomes among
pensioner and beneficiary families and others has changed
significantly since 1976-77.
The external causes of the growth in numbers receiving social
security assistance and of the real growth in expenditures are
complex, but include:
the changing demographic structure of the population -
increases in the proportion of the population of age
pension age, for example;
changing family patterns - for example, the increasing
numbers of sole parent families (these in turn may be
related to the changing demographic structure); and
very substantial increases in unemployment.
Probably the most important influence, at least in the past few
years, has been changed labour market conditions and the
increase in unemployment. which have led not only to
substantial growth in numbers receiving unemployment benefit,
but may have also increased the numbers receiving other
payments such as invalid pensions, sole parent pensions, age
and veterans' pensions, and sickness and special benefits. The
growth in the scope and duration of unemployment also has had
implications in terms of the growing interaction of the income
tax and social security systems. In the past a major
consideration with respect to beneficiaries was to treat them,
as far as possible, in the same way as other members of the
workforce, with consequences both for the unit of payment and
the tax treatment of that payment.
Summary
The scope and cost of social security provisions has grown
significantly since 1964-65. This growth has been viewed in a
number of ways:
as an indication of an unwelcome increase in dependence
upon government support;
as a necessary and humane public response to changed
economic and social conditions; or
9.
as an only-to-be-expected development in the "maturing" of
the Australian welfare state, whose foundations were laid
in the 1940s and earlier - a maturation comparable with
that of social security systems in many overseas countries.
However these changes are interpreted, what cannot be denied is

that the social security system in the 1980s is far more than a
residual part of public policies, of limited relevance to the
mainstream of Australian social and economic life. Expenditure
on social security programs is now the largest single component
of the federal Budget. As pointed out previously, at
30 June 1986 there were some 2.7 million pensioners and
beneficiaries, plus their children. For at least some time
during the course of the life cycle the great majority of
people can be expected to rely to some extent on the social
security system. This is particularly so in retirement, where
the age pension (plus the equivalent service pension) currently
covers some 80 per cent of the aged population. Even in
cross-sectional terms, the social security system extends quite
deeply into the income distribution, because of the increases
in real rates of payment and the liberalisations of income
tests outlined previously.
2.2 Changes in the Personal Income Tax System
Like the social security system. the taxation system has

experienced significant changes since the early 1960s. As
noted in the Draft White Paper "Reform of the Australian Tax
System" and elsewhere, two important features of these changes
are the increase in overall tax burdens, and the heavy and
growing reliance on personal income taxation. Aspects of these
changes are shown in Appendix B.
The increase in tax burdens is revealed in the increasing share

of total Commonwealth tax revenue in GDP. It rose from 19 to
25 per cent between 1964-65 and 1985-86, an average growth of
1.4 per cent each year. As a share of AWE, per capita
Commonwealth taxation increased from 12 to 17 per cent - an
annual average growth of 1.6 per cent. As well, in the same
period nominal per capita Commonwealth taxation increased from
$327 to $3670 per year and, in real 1985-86 dollars, from $1628
to $3670 per year - annual average growth rates of 12.2 and 3.9
per cent respectively.
Of most interest in the context of this paper is the growing

Australian reliance on income taxation. As a proportion of
total Commonwealth taxation revenue, income taxes have
increased from 41 to 56 per cent between 1964-65 and 1985-86.
Per capita income tax burdens have increased from $130 to $2060
per year in nominal terms and, in real 1985-86 d o l l a r s , from
$670 to $2060 per year - annual average growth rates of 13.9
and 5.5 per cent respectively. Per capita income taxation as a
share of AWE has increased each year on average by 3.1
per cent, twice the comparable rate of increase in total
taxation.
10.
In personal income tax as a proportion of total tax revenues,
Australia ranks third out of 22 OECD countries, compared to
seventeenth in relation to aggregate taxation levels
(Department of Treasury (1985)). However, this comparison is
complicated by the fact that Australia finances its social
security payments entirely out of general revenue. In many
other OECD countries there are social security contributions
made by employees, which are significant in aggregate and can
be considered analogous to personal income taxes (see Ingles,
1982). Comparing combined personal income taxes and employee
social security contributions as a proportion of total taxes,
Australia ranks seventh out of 22 OECD countries.
Public debate about personal income taxation in Australia has
generally concentrated on the issues of the overall level of
taxation, the effects of inflation on taxation revenues and the
distribution of the tax burden, the incentive effects of the
progressive personal income tax system, tax avoidance and tax
evasion and the components of a well-balanced tax structure.
Accelerating inflation in the 1970s further highlighted many of
these issues. In 1985 these issues were widely debated in the
lead up to and during the National Taxation Summit, following
which the Government embarked upon a package of reforms to be
implemented over the next two years. While these reforms do
not represent a major shift away from reliance on personal
income tax - new taxes being levied only on real capital gains
and fringe benefits - they are designed to achieve the
following objectives outlined in the Treasurer's Statement
(1985):
to reduce marginal rates significantly;
to curtail tax avoidance and evasion and restore fairness
to the tax system; and
to gear the tax system tor economic growth by providing
greater rewards for initiative. removing distorting
shelters and ending the double taxation of dividends.
Rate Scales
The income tax scale has always had a progressive structure.
The scale in place in 1964-65 was virtually unchanged from that
of a decade earlier. Since 1964-65 a number of changes,
particularly in the mid to late 1970s, significantly altered
the structure of the scale while retaining its overall
progressivity. These changes were to the number and size of
tax brackets in the scale and to the marginal rates in these
brackets. Alteration to the rate structure also occurred
through changes to threshold arrangements.
11.
Threshold Arrangements
In 1964-65 there was no formal zero rate bracket as there is at
present. Tax was generally levied on every dollar of income.
There was a level of income below which no tax was payable, but
"shading-in" arrangements brought tax up to full rates very
quickly above that level. The exemption level was $416 in
1964-65 and it remained at that level until 1972-73 when it
rose to $1040.
In 1975-76 a general concessional rebate was introduced. This,

in part, replaced deductions for expenditure on items such as
medical and dental care, life assurance, superannuation and
education. (From 1975-76 to 1984-85 an additional concessional
expenditure rebate could also be claimed if expenditure on
these items exceeded certain levels). All resident taxpayers
were eligible to claim this rebate irrespective of the
concessional expenditure they incurred. This effectively
introduced a zero rate bracket into the tax scale which
extended beyond the tax exemption levels making such
arrangements superfluous. In 1977-78 the rebate was
incorporated into the rate scale itself by the formal
introduction of a zero rate bracket.
Marginal Rate Structure

The tax scale of 1964-65 consisted of 29 brackets with marginal
rates ranging from 0.4 to 66.7 cents per dollar. The following
lists the variations that were made in the subsequent years.
1965-66 - Small and practically insignificant changes to
marginal rates were made to accommodate the
introduction of decimal currency.
A tax surcharge was introduced and levied at the rate
— of 2.5 per cent of the amount of tax calculated using
the tax scale.
1970-71 - The number of tax brackets was reduced to 28 and the

marginal rate structure was altered, reducing average
tax rates at all but very high income levels (about
800 per cent of AWE).
1971-72 - The tax surcharge was varied twice during the year
effectively increasing the rate to 4.375 per cent for
1971-72 as a whole.
1972-73 - Marginal rates were reduced except at the top end of
the scale where a new higher bracket was introduced
to maintain the top marginal rate.
- The tax surcharge was removed.
1974-75 - The number of brackets was reduced to 14 and marginal

rates were generally lowered at the bottom and raised
at the top of the scale. The top marginal rate was
increased slightly to 67 cents per dollar.
12.
1975-76 - The number of brackets was reduced to seven.
Marginal rates were reduced at the upper end of the
scale with the top rate being set at 65 cents per
dollar. The rates were generally increased at the
lower end although the changes to threshold
arrangements outlined above offset most tax increases
on lower incomes.
1976-77 - The income ranges of the marginal rate brackets were
widened to effect full indexation from July 1. The
general concessional rebate was increased accordingly.
1977-78 - From 1 July the income ranges of the marginal rate
brackets were widened to effect full indexation, and
the general concessional rebate was increased
accordingly.
- A new and simplified rate scale was introduced from 1
February. Its features were:
Reduction in the number of brackets from 7 to 4;
Conversion of the general concessional rebate
into a zero rate bracket;
Lowering of the top marginal rate from 65 to 60
cents per dollar.
1978-79 - From July 1 the marginal rate brackets were widened
to effect half tax indexation.
- Marginal rates, excluding the zero rate, were
increased by 1.5 percentage points.
1979-80 - Tax indexation was suspended. The only change to the
rate scale was the removal, from 1 November, of the
increase in marginal rates of the previous year.
This effectively lowered the marginal rates by 0.43
percentage points in 1979-80.
to effect half tax indexation.
to effect half tax indexation. This was the last
year of automatic tax indexation.
1982-83 - Rates of tax were cut across the board by increasing
the income ranges of the lower brackets and reducing
the first non-zero marginal rate from 32 to 30 cents
per dollar. There was a part year effect in the
first year as the measures were introduced on 1
November 1982.
13.
1984-85 - Rates of tax were cut across the board by introducing
a new 25 cent per dollar bracket above the zero
rate. The magnitude of the reductions in tax were
reduced at higher income levels by introducing a new
bracket immediately below the top one and lowering
the income level at which the top marginal rate
bracket began. The reductions took effect from 1
November 1984 and had a part year effect in the first
year.
Deductions/Rebates for Dependants

Clearly. these changes in the rate scale have major
implications for the distribution of incomes. More important
in terms of this study, however, are the changes to tax
provisions for dependants, which have significantly affected
the distribution of real family incomes.
Until 1975-76 dependants of taxpayers had been recognized
through the provision of a number of deductions for
dependants. The major ones were for dependent spouses and for
children. Others included deductions for invalid relatives,
parents/parents-in-law and housekeepers. The only changes to
these deductions before the mid 1970s were occasional increases
in their rates. Dependants were also recognised through
deductions for concessional expenditure which could include
claims for items such as the medical, dental and education
costs of dependants.
In 1974-75 a low income rebate was introduced which ensured
that all taxpayers (who had sufficient tax liabilities) would
receive a benefit of at least 40 percent of the value of the
dependent deductions claimed. This was an initial step towards
the introduction of dependent rebates as it effectively
provided a minimum tax advantage to all taxpayers with
dependants. However, higher income taxpayers were still able
to derive higher benefits from the deductions.
In 1975-76 the deductions were replaced -with rebates for the
same categories of dependants and a sole parent rebate was
introduced. This major change effected a relative distribution
of tax burdens away from low income families to higher income
families who had received most benefit from deductions. The
introduction of a general concessional rebate furthered this
relative redistribution. The concessional expenditure
deductions had provided recognition of expenditure incurred on
dependants. This was maintained with the general concessional
rebate but, more importantly in terms of assistance to low
income taxpayers, it was provided whether the full amounts of
allowable expenditures were incurred or not. A rebate for
concessional expenditure was also introduced and could be
claimed if expenditure on concessional items. including
expenditure on dependants, exceeded certain limits.
14.
A further major change took place in June 1976. when child
endowment and tax rebates for dependent children were replaced
by a new program of family allowances. This change involved an
increase in direct cash assistance to mothers, with a similar
reduction in rebates for taxpayers with dependent children,
usually fathers. For low income families who could not
previously take advantage of the tax rebates (mostly pensioners
and beneficiaries with children), effective rates of assistance
were increased substantially.
In 1982-83 a form of recognition of dependent children was
reintroduced to the tax system by the creation of a dual rate
for the dependent spouse rebate with the higher rate being
"paid" to taxpayers with dependent children as well as a
dependent spouse.
In 1985-86 the concessional expenditure rebate was abolished
and in its place a rebate on medical expenses alone was
introduced. The redistributive effect of this change is
unclear. but it could be expected that those families
(particularly larger families) who had high education costs in
particular may face increased tax liabilities.
Summary
Structurally the personal income tax system of 1985-86 is
considerably different to that of two decades ago. Appendix E
provides some indication of the overall impact of the changes
since 1964-65. A more comprehensive assessment of the overall
impact of these changes, and especially the changes to the rate
scale, is not possible without consistent and detailed data on
how incomes of taxpayers have changed over the period.
Further. given the increased reliance on personal income
taxation it would be important to augment this study with an
assessment of the impact of changes in the personal income tax
system against the impact of changes. both relative and
absolute, in other areas of the tax system. However, the
structural changes that make 1985-86 different from 1964-65
indicate an improvement in progressivity, at least at the very
bottom of the income scale. through the replacement of
deductions with rebates, the "cashing out" of child rebates and
the conversion of concessional expenditure deductions to a zero
rate bracket.
The change in the mid-1970s from tax deductions to rebates and.
to cash payments in the case of child tax rebates, has
heightened debate in Australia on how to view such forms of
assistance in the personal income tax system and analogous
assistance provided through direct cash transfers paid by the
Department of Social Security.
It should be noted that child endowment and family allowances
have always been conceptually different from other cash
payments provided by the Department of Social Security.
Although assistance for children provided in the form of family
allowances now constitutes an expenditure item in the Budget
15.
accounts, it can be argued that they should still properly be
viewed. like the tax rebates for dependent children they
replaced, as part of the tax system. Family allowances may
thus be viewed as a kind of refundable tax credit which to some
extent compensates those with children (at any income level)
for their increased non-discretionary expenditure and
commensurately reduced capacity to pay taxes. Hence the
appropriate policy context in which to consider changes to
family allowances is in conjunction with policy considerations
related to other dependent allowances provided in the tax
system. (See Whiteford. 1986. for further discussion.)
16.
3 TRENDS IN REAL DISPOSABLE INCOMES
The quantitative effects of the policy changes described

previously are set out in detail in Appendices C to F. Tables
in Appendices C, D and E show how the components of disposable
incomes for pensioners. beneficiaries and wage and salary
earners have changed since 1964-65. It is the interaction of
these components that determines a person's command over goods
and services. Appendix F shows the overall changes to
disposable incomes.
There are always difficulties associated with examining a
series of data over time, and looking at trends in disposable
incomes of pensioners, beneficiaries and taxpayers generally is
no exception. The choice of the base year is to some extent
arguable, and it can have a significant influence on the
results. 1964-65 has been chosen as the first year in this
analysis mainly because it allows us to look at policy changes
in a relatively long perspective, and because there were no
major changes to the tax/transfer system either immediately
before, during, or after that year.
The following analysis has generally been broken into four
periods - 1964-65 to 1969-70. 1969-70 to 1976-77. 1976-77 to
1982-83 and 1982-83 to 1985-86. The choice of the delineating
years for these periods is somewhat arbitrary, but has been
made in order to collect together the changes between 1964-65
and 1985-86 into periods which each reflect some overall
direction. Of course these directions may sometimes be the
product of coincidence more than of design. There are other
ways of breaking up the total period and there are other
direction which could be highlighted instead. The overriding
criterion here, though, has been the creation of periods whose
directions highlight changes to family assistance and to
pensions and benefits. The data presented in the appendices
will enable study of other periods.
The earliest period, 1964-65 to 1969-70. is a period of
relatively little change in the tax/transfer system. On the
social security side there were only small movements in real
rates of basic payments although there were large increases in
additional pension/benefit for children. On the tax side, the
rate scale did not change significantly during the period.
The next period, 1969-70 to 1976-77. is one of rapid and
substantial change in tax-transfer arrangements. It is during
this period that the structures of the tax and social security
systems are transformed from those which had been in place,
relatively unchanged, since the 1950s to systems very similar
to current arrangements. Within the social security system
there were significant real increases in payments, parity was
achieved between benefit and pension rates, and new payments
were introduced including supporting mothers benefit. Although
it does not affect the data presented here, the tapered means
test was introduced on pensions in 1969-70. Significant
modifications were subsequently made such that the means test
17.
was transformed, by the end of the period, to a test on income
alone (and free-of-means-test pensions were provided for
persons aged 70 years or over). On the tax side there was
significant alteration of the rate scale, beginning in 1970-71.
which saw the reduction in the number of steps and alteration
of the marginal structure, including the introduction of a
substantial zero-rate bracket. There was also the transfer
from dependent deductions to rebates and in the case of child
dependants the replacement in 1976-77 of rebates with cash
payments.
In the following period. 1976-77 to 1982-83. initiatives in
assistance for families focused primarily upon universal
payments and tax rebates. Family allowances were introduced in
the first year of this period and were increased towards the
end of it. The dependent spouse and sole parent rebates were
increased in most of these years as part of the indexation of
the tax system, and in 1982-83 the higher rate of dependent
spouse rebate was introduced for those taxpayers who also had
dependent children. There was only one increase in the income
tested payments for children and overall both additional
pension/benefit and mothers/guardians allowance fell
substantially in real terms. Family income supplement was
introduced only in the last two months of this period. In the
tax and social security systems more generally, automatic full
indexation of most basic social security payments was
introduced from 1976-77. and the tax rate scales were varied
most years to effect tax indexation with the final indexation
change in the tax system occurring in 1981-82.
The final period. 1982-83 to 1985-86, is one where increases in
family assistance are primarily directed through the
income-tested side of the social security system. Apart from
the full year effect in 1983-84 of the previous increase in
family allowances, sole parent rebate and the dependent spouse
rebate for taxpayers who also have dependent children, there
were no other increases in non-income tested benefits. This
period sees the full impact of the introduction of family
income supplement (FIS) and there are regular ad-hoc increases
in it. additional pension/benefit for children and
mothers/guardian allowance which provide substantial real
increases in these rates. This period also sees special tax
treatment introduced for pensioners in 1982-83 . and for
beneficiaries in 1984-85.
There are problems associated with measuring movements in real
disposable incomes, especially with regard to the analysis of
trends since 1976-77. Basic rates of pensions and benefits are
automatically indexed each May and November on the basis of
movements in the CPI over the preceding six months to December
and June respectively(9). Thus, when the rate of inflation
is falling - as has generally been the case since 1975-76 and
especially since 1982-83 - this lag results in a small real
increase in rates of pensions and benefits. Had the rate of
inflation been rising over this period the indexed rates of
payment would have shown a decline in real value. Of course
there are also lags in the adjustment of community incomes on
account of price movements but these are harder to quantify.
18.
The position for pensioners and beneficiaries in 1983-84 has
been further complicated by the effects of the introduction of
Medicare on the CPI, which has had the effect of overstating
the increase in basic rates of pension and benefit and
understating the decrease in real disposable incomes of
pensioner and beneficiary families with children.
3.1 Income Components

Table 3.1 shows changes in the real value of pensions, benefits
and average earnings. It shows that in the period 1964-65 to
1969-70 only slight increases or decreases in the basic rates
of most pensions and benefits occured. Average weekly earnings
grew substantially in real terms. Additional pension and
mothers/guardians allowance also increased substantially.
Additional pension grew at more than twice the rate of any
other component though it should be noted that this was an
increase of only around $3 per week in real terms.
The period 1969-70 to 1976-77 was characterised by continued
high real growth in AWE and by even greater real increases in
pensions and benefits, with the exception of mothers/guardians
allowance.
Between 1976-77 and 1982-83, AWE continued to grow in real
terms, but at less than half the previous rate. The basic
rates of indexed pensions and benefits also grew slightly in
real terms due to the "indexation gap factor" referred to
TABLE 3.1: Change in Real Annual Rates of Income Components - 1964-65 to 1985-86
Average Annual Change 1964-65 to 1985-86

1964-65 1969-70 1976-77 1982-83 1964-65 Real 1985
to to to to to Percent -86 Dollar
Income Component 1969-70 1976-77 1982-83 1985-86 1985-86 Change Increases
% % % % % % $/yr
Single Rate of:
- Pension + 1.3 + 5.5 + 0.3 + 1.5 + 2.4 + 64.9 +1994.50
- Adult Sickness Benefit - 0.2 +12.3 + 0.3 + 1.5 + 4.2 +137.5 +2934.50
- Adult Unemployment Benefit - 0.2 +12.3 - 3.1 + 5.7 + 3.8 +119.5 +2548.90
- Junior Benefit + 0.8 +22.9 - 7.9 + 2.3 + 5.2 +187.3 +1694.90
Harried Rate of:

- Pension (each) + 0.6 + 4.6 + 0.3 + 1.5 + 2.0 + 50.2 +1411.90
- Benefit - 0.4 +11.9 + 0.3 + 1.5 + 4.0 +129.4 +4768.40
Additional Pension (1st Child) + 7.4 + 5.9 - 4.5 + 8.2 + 3.5 +105.2 +408.10
Mothers/Guardians Allowance + 3.2 - 8.3 - 4.5 + 2.4 - 3.1 - 47.8 -494.40
Average Weekly Earnings + 3.4 + 3.1 + 1.2 + 0.7 + 2.3 + 60.4 +8149.00
19.
previously. The non-indexed payments fell substantially in
real terms, the differences in these decreases showing the
effects of differing ad hoc increases.
In the last period there has been real growth in all rates.
AWE continued to grow but at a rate slightly less than the
previous period, while most of the indexed basic rates grew
slightly faster, primarily because of the "Medicare effect" and
the "indexation gap factor" referred to above. Single adult
unemployment benefit grew substantially reflecting the
reintroduction of indexation and the ad hoc increases made to
move this rate towards parity with the standard pension rate.
Additional pension. in particular. and mothers/guardians
allowance grew very substantially.
Overall, the period since 1964-65 has seen almost all these
components of disposable income increase substantially: the
exception being the mothers/guardians allowance payable to sole
parent pensioners. Relatively, most pension and benefit rates
have increased faster than AWE (see Tables C3 in Appendix C).
These relative improvements should. however. be put into
perspective. First, while the increases in many pension and
benefit rates exceeded real growth in average earnings, the
actual dollar increases in their values were considerably
less. For example, while in percentage terms the adult
unemployment rate increased by almost twice as much as AWE. the
real dollar increase amounted to only 31 per cent of the
corresponding increase in AWE. Second, the high levels of real
growth in benefit rates reflect the additional increases
required to bring their rates up to the levels of corresponding
pension rates. Third, these improvements do not indicate that
the payments now provide an adequate level of income support
for low income families. Improvements in these payments have
been of considerable importance to low income families (see
below). However. particularly in the case of additional
payments for children. Cass (1986) and others point out that
these payments are very inadequate by international standards
and clearly do not meet the basic costs incurred in caring for
children.
3.2 Taxation Components

Tables 3.2 to 3.4 show details of changes in tax/transfer
assistance for families over this period. These details are
similar to those in Table 3.1. except that additional
information is provided on the effects of the changes from
concessional deductions to rebates between 1974-75 and 1975-76
and to family allowances between 1975-76 and 1976-77.
Looking first at the period 1964-65 to 1969-70 it can be seen
that child endowment rates generally fell in this period while
concessional deductions for children grew in real terms, as did
the dependent spouse deduction.
20.
TABLE 3.2: Change in Real Annual Rates of Child Endowment/Family Allowances - 1964-65 to 1985-86

1964-65 1969-70 1974-75 1975-76 1976-77 1982-83 1964-65 Real 1985
to to to to to to to Percent -86 Dollar
Payment For 1969-70 1974-75 1975-76 1976-77 1982-83 1985-86 1985-86 Change Increases
% % % % % % 1 % $/yr
1st Child - 3.0 - 8.6 -11.3 +513.8 - 4.5 - 2.3 + 3.6 +111.6 +144.30
2nd Child - 3.0 - 8.6 -11.4 +338.7 - 4.5 - 2.3 + 2.0 + 51.0 +132.00
3rd Child - 3.0 - 3.2 -11.4 +163.1 - 2.6 - 6.1 + 0.9 + 20.6 + 80.10
4th Child + 0.1 - 3.9 -11.4 +133.9 - 2.6 - 6.1 + 0.9 + 20.6 + 80.10
TABLE 3.3: Change in Real Values of Tax Deductions/Rebates* - 1964-65 TO 1985-86

1964-65 1969-70 1974-75 1975-76 1976-77 1982-83 1964-65 Real 1985
Deduct i on/Rebate 1969-70 1974-75 1975-76 1976-77 1982-83 1985-86 1985-86 Change Increases
% % % 1 % % % % $/yr
Dep. Spouse and:
- Dep. Child(ren) + 3.8 +0.2 +128.6 + 9.7 + 1.5 - 4.0 + 5.3 +196.0 +682
- No Dep. Children + 3.8 +0.2 +128.6 + 9.7 - 0.9 - 6.1 + 4.2 +138.3 +482
_ _ _ _
Sole Parent - +53.8 + 2.5 - 3.2 +780
Dep. Children of:

- Single Taxpayer(**) _ _ _
. First Child + 5.5 + 1.9 +53.9 -100.0 - -219
. Fourth Child + 6.1 + 3.5 +63.3 -100.0 - - - - -139
- One Income Couple(**) _ _
. First Child + 6.2 + 0.1 +79.2 -100.0 - - -199
. Fourth Child + 7.6 + 4.8 +60.8 -100.0 - - - - -125
* The values of deductions and rebates are measured for taxpayers with gross incomes equal
to 100 per cent of AWE.
** The value of child tax deductions differs between sole parent taxpayers and couples
because it varies with income. While these families all have gross incomes equal to AWE,
their effective incomes for the purposes of the deductions are lower in the case of
couples due to eligibility for the dependent spouse deduction.
21.
TABLE 3.4: Change in Real Values of Combined Child Endowment/Family Allowance and Tax
Deductions/Rebates for Children* - 1964-65 TO 1985-86

Combined Payment 1964-65 1969-70 1974-75 1975-76 1976-77 1982-83 1964-65 Real 1985
for Dependent to to to to to to to Percent -86 Dollar
Children of: 1969-70 1974-75 1975-76 1976-77 1982-83 1985-86 1985-86 Change Increases
% % 1 % % % % % $/yr
SINGLE TAXPAYER
. First Child + 2.7 - 0.6 441.8 -29.1 - 4.5 - 2.3 - 1.1 -21.3 - 74
. Second Child + 0.2 - 3.3 +36.7 +12.9 - 4.5 - 2.4 - 0.3 - 6.5 - 28
. Third Child + 0.1 - 1.4 +23.2 + 7.6 - 2.6 - 6.1 - 0.6 -12.0 - 64
. Fourth Child + 1.8 - 1.2 +19.2 + 2.6 - 2.6 - 6.1 - 0.6 -11.2 - 59
ONE INCOME COUPLE
. First Child + 3.0 - 2.1 +60.4 -29.4 - 4.4 -2.3 - 0.9 -16.5 - 54
. Second Child + 0.6 - 2.7 +36.7 +12.9 -4.5 - 2.4 - 0.1 - 2.0 - 8
. Third Child - 0.4 - 0.2 +20.2 + 7.8 - 2.6 - 6.1 - 0.6 -11.2 - 59
. Fourth Child + 2.3 -0.9 +18.5 + 2.5 - 2.6 - 6.1 - 0.4 - 8.8 - 45
The real value of child endowment fell further between 1969-70

and 1975-76, while the real value of assistance in the tax
system generally increased, especially in the change from
deductions to rebates between 1974-75 and 1975-76. Thus in the
entire period up to 1975-76 the changes in the real value of
these forms of assistance would have tended to have the effect
of widening the gap between the poorest families, who could
take advantage only of child endowment, and better-off families
who were able to avail themselves of the deductions and rebates
as well as child endowment (compare Tables 3.2 and 3.4).
The introduction of family allowances in May 1976 - to replace
child endowment and child tax rebates - significantly changed
this situation. Lower income families benefited substantially,
while most of the families who had been assisted by tax rebates
as well as child endowment received lower real levels of
overall assistance. These reductions were particularly large
for one and two child families(10). However, the impact of
these real reductions on families' disposable incomes were
offset by tax cuts associated with indexation of the tax scale
and rebates (see Table E4 in Appendix E).
Since 1976-77 family allowances have not been indexed and have
been effectively subject to only one ad hoc increase. This has
resulted in a significant reduction in child assistance for all
families.
Despite the increases in child endowment/family allowances that
have occured during the entire period, the combined effect of
changes in tax assistance for children has been one of decline
for families who benefit from tax measures (see Table 3.4 and
Figure 3.2). The major contributing factor to this has been
22.
TABLE 3.2: Change in Real Annual Rates of Child Endowment/Family Allowances - 1964-65 to 1985-86

1964-65 1969-70 1974-75 1975-76 1976-77 1982-83 1964-65 Real 1985
Payment For 1969-70 1974-75 1975-76 1976-77 1982-83 1985-86 1985-86 Change Increases
1 % % % % % % % $/yr
1st Child - 3.0 - 8.6 -11.3 +513.8 - 4.5 - 2.3 + 3.6 +111.6 +144.30
2nd Child - 3.0 - 8.6 -11.4 +338.7 - 4.5 - 2.3 + 2.0 + 51.0 +132.00
3rd Child - 3.0 - 3.2 -11.4 +163.1 - 2.6 - 6.1 + 0.9 + 20.6 + 80.10
4th Child + 0.1 - 3.9 -11.4 +133.9 - 2.6 - 6.1 + 0.9 + 20.6 + 80.10
TABLE 3.3: Change in Real Values of Tax Deductions/Rebates* - 1964-65 TO 1985-86

1964-65 1969-70 1974-75 1975-76 1976-77 1982-83 1964-65 Real 1985
Deduction/Rebate 1969-70 1974-75 1975-76 1976-77 1982-83 1985-86 1985-86 Change Increases
% % % % % % % 1 $/yr
Dep. Spouse and:
- Dep. Child(ren) + 3.8 +0.2 +128.6 + 9.7 + 1.5 - 4.0 + 5.3 +196.0 +682
- No Dep. Children + 3.8 +0.2 +128.6 + 9.7 - 0.9 - 6.1 + 4.2 +138.3 +482
_ _ _ _ _
Sole Parent +53.8 + 2.5 - 3.2 +780
Dep. Children of:
- Single Taxpayer(**) _ _ _ _
. First Child + 5.5 + 1.9 +53.9 -100.0 _ _ _ _ -219
. Fourth Child + 6.1 + 3.5 +63.3 -100.0 -139
- One Income Couple(**) _ _ _ _
. First Child + 6.2 + 0.1 +79.2 -100.0 -199
. Fourth Child + 7.6 + 4.8 +60.8 -100.0 - - - - -125
** The value of child tax deductions differs between sole parent taxpayers and couples
because it varies with income. While these families all have gross incomes equal to AWE,
their effective incomes for the purposes of the deductions are lower in the case of
couples due to eligibility for the dependent spouse deduction.
21.
TABLE 3.4: Change in Real Values of Combined Child Endowment/Family Allowance and Tax
Deductions/Rebates for Children* - 1964-65 TO 1985-86

Combined Payment 1964-65 1969-70 1974-75 1975-76 1976-77 1982-83 1964-65 Real 1985
for Dependent to to to to to to to Percent -86 Dollar
Children of: 1969-70 1974-75 1975-76 1976-77 1982-83 1985-86 1985-86 Change Increases
% % % % % % % % $/yr
SINGLE TAXPAYER
. First Child + 2.7 -0.6 441.8 -29.1 - 4.5 - 2.3 - 1.1 -21.3 - 74
. Second Child + 0.2 - 3.3 436.7 +12.9 - 4.5 - 2.4 - 0.3 - 6.5 - 28
. Third Child + 0.1 - 1.4 +23.2 + 7.6 - 2.6 - 6.1 - 0.6 -12.0 - 64
. Fourth Child + 1.8 - 1.2 +19.2 + 2.6 - 2.6 - 6.1 - 0.6 -11.2 - 59
ONE INCOME COUPLE

. First Child + 3.0 - 2.1 460.4 -29.4 - 4.4 - 2.3 - 0.9 -16.5 - 54
. Second Child + 0.6 - 2.7 436.7 +12.9 -4.5 - 2.4 - 0.1 - 2.0 - 8
. Third Child - 0.4 - 0.2 +20.2 + 7.8 - 2.6 - 6.1 - 0.6 -11.2 - 59
. Fourth Child + 2.3 -0.9 +18.5 + 2.5 - 2.6 - 6.1 - 0.4 - 8.8 - 45
The real value of child endowment fell further between 1969-70
and 1975-76, while the real value of assistance in the tax
system generally increased, especially in the change from
deductions to rebates between 1974-75 and 1975-76. Thus in the
entire period up to 1975-76 the changes in the real value of
these forms of assistance would have tended to have the effect
of widening the gap between the poorest families, who could
take advantage only of child endowment, and better-off families
who were able to avail themselves of the deductions and rebates
as well as child endowment (compare Tables 3.2 and 3.4).
The introduction of family allowances in May 1976 - to replace
child endowment and child tax rebates - significantly changed
this situation. Lower income families benefited substantially,
while most of the families who had been assisted by tax rebates
as well as child endowment received lower real levels of
overall assistance. These reductions were particularly large
for one and two child families(10). However, the impact of
these real reductions on families' disposable incomes were
offset by tax cuts associated with indexation of the tax scale
and rebates (see Table E4 in Appendix E).
Since 1976-77 family allowances have not been indexed and have
been effectively subject to only one ad hoc increase. This has
resulted in a significant reduction in child assistance for all
families.
Despite the increases in child endowment/family allowances that
have occured during the entire period, the combined effect of
changes in tax assistance for children has been one of decline
for families who benefit from tax measures (see Table 3.4 and
Figure 3.2). The major contributing factor to this has been
22.
the declines in assistance since 1976-77. However the
transition from rebates to family allowances in 1976 did result
in considerable real losses in overall payments for first
children. These losses were large enough to result in real
cuts in child assistance for families with up to four children.
3.3 Changes in Real Disposable Incomes

The trends in cash payments, tax deductions and tax rebates
outlined above have had a major influence on the changing
distribution of family incomes in the past twenty years.
Changes to the tax rate scale have also had substantial effects
on the distribution of income but in looking at how families
with different numbers of children and at different income
levels have fared. it is the components described in
Tables 3.1, to 3.4 that have been of greatest importance.
Tables 3.5 to 3.12 summarise Appendix F which shows the overall
effects of changes in the tax/transfer system on the disposable
incomes of Australian families. These tables show how the
disposable incomes of various families have moved over the
period. They also show how families' disposable incomes have
moved relative to the disposable incomes of single persons
earning AWE. The later tables allow assessment of how changes
in assistance have redistributed incomes among the various
families over the last two decades.
Pensioners and Beneficiaries

Table 3.5 shows the changing situation of maximum rate
pensioners and beneficiaries. In overall terms, the period
1964-65 to 1985-86 saw substantial real increases in the
disposable incomes of pensioners and beneficiaries.
In the period 1964-65 to 1969-70 there were generally modest
increases in the real disposable incomes of pensioners without
children. Pensioners with children received significant
increases in additional pension payments (but not child
endowment). Adult beneficiaries without children had small
declines in real incomes. As with pensioner families, the
substantial increases in additional benefit for children
provided real increases in disposable incomes for beneficiary
families with children.
Between 1969-70 and 1976-77 the situation moved in the opposite
direction - all pensioners and beneficiaries experienced very
substantial increases in their real disposable incomes, but the
increases for families with children were generally not so
great. It is notable for example that single pensioners had a
greater real increase in disposable incomes than any of the
sole parent families shown. Both types of pensioners gained
from the same real increase in the standard rate, but for sole
parents, despite the introduction of family allowance, the very
substantial real cuts in mothers/guardians allowance meant that
their relative position did not improve as much as that of
those without children.
23.
TABLE 3.5: Changes in Real Disposable Incomes of Social Security Recipients (Who Have No Other
Income) - 1964-65 to 1985-86

1964-65 1969-70 1976-77 1982-83 1964-65 Real 1985
Pensioner/Beneficiary 1969-70 1976-77 1982-83 1985-86 1985-86 Changes Increases
% % % % % % $/yr
SINGLE PENSIONER With:
- No Children + 1.3 + 5.5 + 0.3 + 1.5 + 2.4 + 64.9 +1995
- One Child + 2.2 + 3.7 - 1.0 + 2.1 + 1.8 + 44.4 +2053
- Two Children + 2.9 + 4.0 - 1.5 + 2.4 + 1.9 + 49.2 +2592
- Four Children + 3.9 + 4.2 - 2.1 + 2.3 + 2.0 + 52.3 +3569
PENSIONER COUPLE With:
- No Children + 0.6 + 4.6 + 0.3 + 1.5 + 2.0 + 50.2 +2824
- One Child + 1.0 + 5.1 - 0.3 + 1.9 + 2.1 + 54.9 +3376
- Two Children + 1.7 + 5.2 - 0.8 + 2.1 + 2.2 + 57.7 +3917
- Four Children + 2.8 + 5.1 - 1.4 + 2.1 + 2.2 + 58.6 +4893
UNEMPLOYMENT BENEFICIARY:
-Single Adult - 0.2 +12.3 - 3.1 + 5.7 + 3.8 +119.4 +2548
-Single 16-17 years + 0.8 +22.9 - 7.9 + 2.3 + 5.1 +187.3 +1695
-Couple With:
. No Children - 0.4 +11.9 + 0.3 + 1.5 + 4.0 +129.4 +4769
. One Child + 0.1 +11.7 - 0.3 + 1.9 + 4.0 +126.6 +5321
. Two Children + 1.0 +10.9 - 0.9 + 2.3 + 3.8 +120.9 +5861
. Four Children + 2.2 + 9.1 - 1.5 + 3.3 + 3.5 +106.8 +6837
In the period 1976-77 to 1982-83 the real disposable incomes of

most pensioners and beneficiaries without children rose
slightly in real terms, but mainly because of the indexation
factors referred to previously. In contrast. the real
disposable incomes of pensioners and beneficiaries with
children fell, with the declines being greatest for sole
parents and large families. These declines in real disposable
incomes, despite slight increases in basic rates of pensions
and benefits, are due to the reductions over the period in real
rates of additional pension/benefit, family allowances and. in
the case of sole parents, mothers/guardians allowance.
Since 1982-83 there have been real increases in the disposable
incomes of all pensioners and beneficiaries. All components of
disposable incomes, except family allowance, have increased in
real terms in this period. The larger increases for
beneficiary couples with four children reflect the freeing of
the additional payments for children from tax.
However, comparing the positions of pensioners and

beneficiaries with children in 1985-86 to what they were in
1976-77 (see Tables F2.1 to F2.6 in Appendix F) there have been
only slight improvements in the positions of some families, and
in many cases, pensioner and beneficiary families are still
24.
behind their 1976-77 positions. Those worst affected have been
sole parents. Sole parents with one child are only marginally
better off. The positions of those with two or more children
have worsened, with the declines being more for those with
greater numbers of children - in the case of a sole parent with
four children by more than 5 percent between 1976-77 and
1985-86.
The large percentage increases which pensioners and
beneficiaries have experienced should always be seen in the
context of the actual dollar increases. As with all families
considered in this paper, pensioner and beneficiary families
have experienced increases in disposable incomes over the
entire period. However, these increases are considerably
smaller dollar amounts than those received by more affluent
members of the community and even compared to persons earning
AWE are small. For example. the absolute increase in
disposable incomes received by a single pensioner is only
40 per cent of that received by a single person earning AWE.
Table 3.6 demonstrates how the disposable incomes of pensioners
and beneficiaries have moved relative to a single person
earning AWE. Broadly their positions have improved between
1964-65 and 1985-86 although they have declined from what they
TABLE 3.6: Disposable Incomes of Social Security Recipients (Who Have No Other Income) as
Proportions of Disposable Incomes of Single Persons Earning AWE - 1964-65 to 1985-86
Average Annual
Proportion of Disposable Change in Proportion
Income of Single Person 1964-65 1976-77
Earning AWE at to to
Pensioner/Beneficiary 1964-65 1969-70 1976-77 1982-83 1985-86 1985-86 1985-86
% 1 % % % % %
SINGLE PENSIONER With:
- No Children 26.4 25.1 30.9 29.6 30.6 + 0.7 - 0.1
- One Child 39.8 39.5 43.0 38.3 40.3 + 0.1 - 0.7
- Two Children 45.3 46.8 51.9 49.7 47.4 + 0.2 - 1.0
- Four Children 58.7 63.3 71.2 59.3 62.7 + 0.3 - 1.4
PENSIONER COUPLE With:
- No Children 48.4 44.5 51.4 49.4 51.0 + 0.2 - 0.1
- One Child 52.9 49.6 59.2 55.0 57.4 + 0.4 - 0.3
- Two Children 58.4 56.8 68.1 61.4 64.6 + 0.5 - 0.6
- Four Children 71.8 73.4 87.4 76.0 79.8 + 0.5 - 1.0
UNEMPLOYMENT BENEFICIARY:
-Single Adult 18.3 16.2 30.9 24.2 28.2 + 2.1 - 1.0
-Single 16-17 years 7.8 7.2 25.7 14.8 15.7 + 3.4 - 5.3
-Couple With:
. No Children 31.7 27.7 51.4 49.4 51.0 + 2.3 - 0.1
. One Child 36.1 32.4 59.2 55.0 57.4 + 2.2 - 0.3
. Two Children 41.7 39.1 68.1 61.1 64.6 + 2.1 - 0.6
. Four Children 55.0 54.8 85.2 73.3 79.8 + 1.8 - 0.7
25.
were in 1976-77. At the same time, pensioners and
beneficiaries with children (particularly several children)
have not experienced as large an improvement overall and they
have suffered the greater declines since 1976-77.
Wage and Salary Earners

Table 3.7 shows changes in the real disposable incomes of
different taxpayer families with gross incomes at 50 per cent
of AWE(11). These families experienced real growth in their
disposable incomes in the period 1964-65 to 1969-70. This
growth. especially for families with children, was
significantly greater in the period to 1976-77. primarily
because of substantial cuts in their real tax liabilities
between 1973-74 and 1975-76 (due to the raising of effective
thresholds between 1973-74 and 1974-75 and. more importantly,
by the introduction of rebates in 1975-76) and the introduction
of family allowances in 1976-77. Between 1976-77 and 1982-83
there was slight growth in real disposable incomes but in the
period since 1982-83 there has been significant improvement in
the real disposable incomes of low income families with
children. This is primarily because of the introduction of FIS
in late 1982-83 without which there would have been little
change in the real disposable incomes of these families.
It should be noted at this point that the take-up of FIS
amongst the eligible population is apparently low (Pech, 1986).
which indicates that not all families earning 50 per cent of
AWE and who have children have received the significant boost
to their disposable incomes that FIS provides. However, for
the purposes of this study, which is focusing on the nominal
redistributive impact of policy changes, it is assumed that FIS
is being paid when the family is eligible to receive it.
Looking at the entire period since 1964-65. it is apparent that
these low income families have benefited from substantial
increases in their real disposable incomes. The increases for
those with children have been particularly large, and appear to
have increased the financial advantages of work; for example,
in 1964-65 the disposable income of a pensioner couple with
four children was 6 per cent higher than that of a
corresponding one income couple earning 50 per cent of AWE. By
1985-86 the disposable income of the one income couple with
four children was 14 per cent higher than that of the
corresponding pensioner couple.
The changes in the relative positions of families earning
50 per cent of AWE show significant improvement over both the
entire period and from 1976-77 (see Table 3.8). The exceptions
to this have been families without children. Their relative
positions have seen declines since 1976-77. The other notable
feature of changes in relative positions for this group are
that improvements have been greatest for larger families.
26.
TABLE 3.7: Changes in Real Disposable Incomes of Wage and Salary Earners with Gross Incomes
Equal to 50 Per Cent of AWE* - 1964-65 to 1985-86

1964-65 1969-70 1976-77 1982-83 1964-65 Real 1985
Family Type 1969-70 1976-77 1982-83 1985-86 1985-86 Changes Increases
% 1 % % % % $/yr
SINGLE PERSON With:
- No Children + 2.8 + 3.1 + 0.3 + 0.9 + 1.9 +48.4 +3021
- One Child • + 2.7 + 4.3 + 0.5 + 2.7 + 2.6 +71.0 +4614
- Two Children + 2.6 + 4.4 + 0.4 + 4.4 + 2.8 +79.9 +5461
- Four Children + 2.3 + 4.5 + 0.4 + 6.9 + 3.1 +91.1 +7065
ONE INCOME COUPLE With:
- No Children + 2.8 + 4.2 + 0.2 + 0.3 + 2.2 +56.9 +3662
- One Child + 2.8 + 4.3 + 0.5 + 2.4 + 2.6 +70.4 +4695
- Two Children + 2.7 + 4.5 + 0.4 + 4.2 + 2.8 +79.5 +5557
- Four Children + 2.4 + 4.6 + 0.4 + 6.6 + 3.2 +91.7 +7210
TWO INCOME COUPLE (Income Split 60:40) With:
- No Children + 3.0 + 3.9 + 0.7 0.0 + 2.2 +58.7 +3829
- One Child + 3.0 + 4.1 + 1.0 + 1.6 + 2.6 +70.1 +4711
- Two Children + 2.8 + 4.3 + 0.9 + 3.4 + 2.8 +79.6 +5592
- Four Children + 2.5 + 4.6 + 0.8 + 5.8 + 3.2 +92.8 +7290
* Assumes families with children receive FIS in relevant years
TABLE 3.8: Disposable Incomes of Wage and Salary Earners with Gross Incomes Equal to 50 per
cent of AWE* as Proportions of Disposable Incomes of Single Persons Earning AWE -
1964-65 to 1985-86
Proportion of Disposable Average Annual

Income of a Single Person Change in Proportion
Earning AWE at 1964-65 1976-77
to to
Family Type 1964-65 1969-70 1976-77 1982-83 1985-86 1985-86 1985-86
% % % % % % %
SINGLE PERSON With:
- No Children 53.7 54.9 57.3 55.0 55.9 + 0.2 - 0.3
- One Child 55.9 57.0 64.6 62.8 67.0 + 0.9 + 0.4
- Two Children 58.8 59.6 68.2 66.0 74.2 + 1.1 + 0.9
- Four Children 66.7 66.7 76.7 74.2 89.4 + 1.4 + 1.7
- No Children 55.3 56.8 64.0 61.2 60.9 + 0.5 - 0.6
- One Child 57.4 58.7 66.5 64.6 68.5 + 0.8 + 0.3
- Two Children 60.1 61.2 70.1 67.8 75.7 + 1.1 + 0.9
- Four Children 67.6 68.0 78.7 76.1 90.9 + 1.4 + 1.6
- No Children 56.1 58.0 64.0 63.2 62.4 + 0.5 - 0.3
- One Child 57.8 59.7 66.5 66.6 69.0 + 0.8 + 0.4
- Two Children 60.4 61.9 70.1 69.8 76.1 + 1.1 + 0.9
- Four Children 67.5 68.2 78.7 78.1 91.3 + 1.4 + 1.7
* Assumes families with children receive FIS in relevant years.
27.
Tables 3.9 and 3.11 show the changes in real disposable incomes
of taxpayers with gross incomes at 100 and 200 per cent of AWE
respectively. The patterns for both income groups are very
similar, and both have had substantial increases in real
disposable incomes since 1964-65. These proportional
increases, however, have not been as large as those for
pensioners and beneficiaries or those for families with incomes
at 50 per cent of AWE, although the actual dollar increases
have been significantly more (compare with Tables 3.5 and
3.7). Another feature for those families with incomes at 100
and 200 per cent of AWE is that the increases in real
disposable incomes over the period have generally been lower
the greater the number of children. This has been particularly
so since 1976-77, primarily because of the non-indexation of
family allowances.
Over the period 1964-65 to 1985-86 there have only been small
rises and falls in the positions of families on AWE relative to
single persons earning AWE, and since 1976-77 their relative
positions have all declined (Table 3.10). The relative
positions of families on 200 per cent of AWE have declined over
the entire period and since 1976-77 (Table 3.12). Declines in
assistance for children also affected the relative positions:
families with children fared worse than those without and this
relative disadvantage is greater the larger the number of
children.
3.4 Summary of Trends
This analysis of trends in the real disposable incomes of

families at different selected income levels in the period
1964-65 to 1985-86 shows that over the entire period there have
been substantial increases in real disposable incomes, ranging
from around 30 per cent for those with gross incomes of twice
AWE to between 50 and 60 per cent for pensioners.
Beneficiaries generally had higher increases, but these were
required to raise their disposable incomes to levels equivalent
to those of similar pensioner families. The introduction of
FIS in 1982-83 provided significant increases in the real
disposable incomes of those low income families who had
children and who received the payment. Families with children
and incomes equal to 50 per cent of AWE had increases in real
disposable incomes of 70 per cent or more. This suggests that
during the past twenty years there has been some overall
narrowing of the relative gap between the poorest families and
the rest of the community.
Some specific points should be noted, however. There have been
and are substantial absolute differences between families at
different income levels. The 60 per cent increase in the real
disposable income of a single pensioner is at a starting point
eight times lower than the 30 per cent increase for a taxpayer
with a gross income at 2OO per cent of AWE. There are also
very substantial differences between the periods analysed here,
and particularly since 1976-77 the positions of pensioners,
beneficiaries and most families with children have declined
relative to families without children.
28.
Equal to 100 Per Cent of AWE - 1964-65 to 1985-86

1964-65 1969-70 1976-77 1982-83 1964-65 Real 1985
% % 1 % % % $/yr
SINGLE PERSON With:
- No Children + 2.3 + 2.5 + 1.0 + 0.4 + .7 +42.6 +4957
- One Child + 2.3 + 3.1 + 0.9 + 0.2 + 1.9 +47.3 +5661
- Two Children + 2.3 + 3.1 + 0.8 + 0.2 + 1.8 +45.5 +5635
- Four Children + 2.2 + 3.1 + 0.5 - 0.2 + 1.6 +41.0 +5511
- No Children + 2.4 + 3.0 + 0.8 + 0.1 + 1.8 +45.4 +5438
- One Child + 2.4 + 2.9 + 0.9 + 0.1 + .8 +45.4 +5583
- Two Children + 2.3 + 3.0 + 0.7 + 0.1 + 1.7 +43.9 +5576
- Four Children + 2.2 + 2.9 + 0.5 - 0.3 + 1.6 +39.8 +5473
- No Children + 2.7 + 3.1 + 0.3 + 0.9 + 1.9 +48.6 +6051
- One Child + 2.7 + 3.2 + 0.2 + 0.8 + 1.9 +47.5 +6051
- Two Children + 2.7 + 3.2 + 0.1 + 0.8 + 1.8 +46.5 +6088
- Four Children + 2.5 + 3.3 - 0.1 + 0.4 + 1.7 +43.3 +6075
cent of AWE as Proportions of Disposable Incomes of Single Persons Earning AWE -
1964-65 to 1985-86

Income of Single Person Change in Proportion
to to
Family Type 1964-65 1969-70 1976-77 1982-83 1985-86 1985-86 1985-86
% % % % % % 1
SINGLE PERSON With:
- No Children 100.0 100.0 100.0 100.0 100.0 0.0 0.0
- One Child 103.0 103.0 107.3 107.1 106.3 + 0.2 - 0.1
- Two Children 106.6 106.3 110.9 109.6 108.7 + 0.1 - 0.2
- Four Children 115.7 114.8 119.4 116.5 114.4 - 0.1 - 0.5
- No Children 103.0 103.2 106.9 106.1 105.0 + 0.1 - 0.2
- One Child 105.8 106.1 109.4 108.9 107.9 + 0.1 - 0.2
- Two Children 109.2 109.3 112.9 111.5 110.2 + 0.0 - 0.3
- Four Children 118.2 117.6 121.5 118.4 115.9 - 0.1 - 0.5
- No Children 107.1 109.4 114.6 110.1 111.6 + 0.2 - 0.3
- One Child 109.5 111.8 117.1 111.9 113.3 + 0.2 - 0.4
- Two Children 112.5 114.6 120.6 114.5 115.6 + 0.1 - 0.5
- Four Children 120.7 122.0 129.2 121.4 121.3 + 0.0 - 0.7
29.
Equal to 200 Per Cent of AWE - 1964-65 to 1985-86

1964-65 1969-70 1976-77 1982-83 1964-65 Real 1985
% % \ % % % $/yr
SINGLE PERSON With:
- No Children + 1.7 + 2.3 + 1.0 - 1.4 + 1.3 +30.7 +6328
- One Child + 1.8 + 2.6 + 1.0 - 1.4 + 1.4 +32.7 +6905
- Two Children + 1.7 + 2.5 + 0.9 - 1.4 + 1.3 +31.4 +6787
- Four Children + 1.7 + 2.4 + 0.8 - 1.6 + 1.2 +28.2 +6450
- No Children + 1.8 + 2.5 + 1.0 - 1.5 + 1.3 +31.2 +6611
- One Child + 1.8 .+ 2.4 + 1.0 - 1.5 + 1.3 +30.5 +6608
- Two Children + 1.7 + 2.3 + 0.9 - 1.5 + 1.2 +29.3 +6490
- Four Children + 1.7 + 2.2 + 0.8 - 1.6 + 1.1 +26.4 +6188
- No Children + 2.3 + 2.6 + 0.8 + 0.5 + 1.7 +41.7 +9663
- One Child + 2.3 + 2.5 + 0.7 + 0.4 + 1.6 +40.6 +9559
- Two Children + 2.3 + 2.5 + 0.6 + 0.4 + 1.6 +39.7 +9511
- Four Children + 2.2 + 2.5 + 0.5 + 0.2 + 1.5 +37.2 +9338
cent of AWE as Proportions of Disposable Incomes of Single Persons Earning AWE -
1964-65 to 1985-86

Income of Single Person Change in Proportion
to to
Family Type 1964-65 1969-70 1976-77 1982-83 1985-86 1985-86 1985-86
% % % % % % %
SINGLE PERSON With:
- No Children 177.5 172.7 170.8 171.6 162.6 - 0.4 - 0.5
- One Child 181.7 176.8 178.1 178.7 169.0 - 0.3 - 0.6
- Two Children 186.0 180.9 181.6 181.3 171.3 - 0.4 - 0.6
- Four Children 197.0 191.0 190.2 188.2 177.0 - 0.5 - 0.8
- No Children 182.2 177.5 177.6 177.8 167.6 - 0.4 - 0.6
- One Child 186.4 181.4 180.1 180.5 170.5 - 0.4 - 0.6
- Two Children 190.7 185.5 183.7 183.1 172.9 - 0.5 - 0.7
- Four Children 201.4 195.6 192.2 190.0 178.5 - 0.6 - 0.8
- No Children 199.1 198.8 200.0 197.6 197.9 - 0.0 - 0.1
- One Child 202.4 202.1 202.5 199.4 199.5 - 0.1 - 0.2
- Two Children 206.2 205.7 206.1 202.0 201.9 - 0.1 - 0.2
- Four Children 215.7 214.7 214.6 208.9 207.5 - 0.2 - 0.2
30.
These trends in the disposable incomes of families with
children vis a vis families without children can be directly
traced to policy changes in the social security and taxation
areas since 1976-77. While there have been regular changes to
the tax scale providing general tax cuts to taxpayers
irrespective of the number of their dependents (if any), tax
rebates for dependants have not been increased since 1982-83,
rates of family allowances have effectively been increased only
once and until 1983-84 additional pension/benefit and
mothers/guardians were only increased once. This has had the
effect, over the period since 1976-77, of widening the relative
gap between between families with and without children and in
particular the poorest families and other members of the
community.
A particularly disadvantaged group seems to be sole parent
pensioners. These pensioners have shared in the substantial
real increases in basic rates and have also benefited from a
major expansion of Commonwealth programs of assistance for sole
parents. However, it is notable that sole parents with up to
two children now receive relatively less compared to other
pensioners than they did in 1964-65. This arises because sole
parents have more elements of their total pension that have not
been indexed in recent years than do other pensioner families.
There was a very large real decline in mothers/guardians
allowance in the 1970s and early 1980s. Also, because the
additional pension for children and family allowances amount to
a higher proportion of the overall package for sole parents,
their non-indexation over the same period has disproportionally
disadvantaged them compared to other pensioner families and the
community generally. The increases in mothers/guardians
allowance and additional pension for children provided in the
last three Budgets, while not restoring all sole parents to
their former relative positions have significantly improved
their positions relative to 1982-83.
31.
4 SCHEDULED CHANGES FOR 1986-87 AND 1987-88
Following on from the National Taxation Summit in July 1985 a

number of changes to the tax and social security systems were
proposed which will have an impact on the future trends in
disposable incomes. In the social security system changes are
to be made to the pensions and benefits income tests in July
1987. These are:
increases in the pensions free areas from $30 to $40 per
week for singles and from $50 to $70 per week for married
couples;
doubling of the additional allowable income for each
dependent child of pensioners to $12 per week; and
removal of the separate income test on rent assistance for
pensioners and beneficiaries, effectively extending the
payment to most pensioners and beneficiaries who rent in
the private market.
These poverty trap initiatives, as the changes are known, will
not directly increase the disposable incomes of the pensioners
and beneficiaries studied above. Instead they will increase
the disposable incomes of those pensioners who have additional
income. These increases can be quite significant in certain
cases. For example a sole parent with 2 children who is
renting privately and earning $75 a week in part time
employment will receive an increase in pension of $26 per week.
The changes in the personal income tax rate scale are the most
relevant to the analysis above, although the proposed changes
in other areas of the tax system will no doubt significantly
affect the disposable incomes of some taxpayers. Table 4.1
shows the proposed rate scale changes and the reductions in tax
liabilities these changes would provide.
TABLE 4.1: Proposed Tax Scale Changes and Tax Cuts
Current After December 1986 After July 1987

Annual Marginal Marginal Marginal Additional
Taxable Income Rate Rate Weekly Tax Cut Rate Weekly Tax Cut
$ % % $ % $
0 - 4595 0 0 0.00 0 0.00

4596 - 5100 25 0 0.00 - 2.40 0 0.00
5101 - 12500 25 24 2.40 - 3.90 24 0.00
12501 - 12600 30 24 3.90 - 4.00 24 0.00
12601 - 19500 30 29 4.00 - 5.30 29 0.00
19501 - 28000 46 43 5.30 - 10.20 40 0.00 - 4.90
28001 - 35000 48 46 10.20 - 12.90 40 4.90 - 13.00
35001 and over 60 55 12.90 + 49 13.00 +
32.
These changes will provide increases in disposable incomes for
virtually all taxpayers. However. there will be no
corresponding increases to the dependent spouse or sole parent
rebates or to family allowances. As was noted above, there
have been absolute declines in the real values of these
components of the disposable incomes of families with
dependents over recent years. The proposed tax cuts will
partly offset these declines. At the same time, the same tax
cuts will flow to taxpayers without dependents, so that the
position of those with children will worsen relatively.
33.
NOTES
(1) See. Department of Social Security (1979); Ingles, Podger,

Raymond and Jackson (1982); Jackson (1982); Podger,
Raymond and Jackson (1980a); Podger. Raymond and Jackson
(1980b); Raymond and Whiteford (1984); and Harding and
Whiteford (1985)
(2) For example, see Edwards (1979); Keens and Cass (1982);
Manning and Saunders (1978); and Saunders (1982).
(3) The term "family" is used somewhat loosely. The unit of
concern is actually the income unit for social security
purposes, a unit somewhat similar to the "nuclear
family". For a discussion of issues associated with the
income unit, see Edwards (1983).
(4) In this paper income is the sum of income from earnings
(if any) plus any social security entitlements (including
child endowment or family allowances) less personal income
taxes levied on that income. Personal income taxes are
net of any rebates or deductions for dependants. No
estimate has been made of concessional expenditure
deductions or rebates which may have been claimed by
taxpayers and these have not been included in calculations
of disposable incomes. The general concessional rebate
(introduced in 1975-76 and incorporated in the tax
threshold in 1977-78) has, however, been included in
calculations. This has had the effect of making
disposable incomes before 1975-76 somewhat lower than they
may actually have been. The Medicare Levy (introduced in
1983-84) and the Health Insurance Levy (1967-77 to
1978-79) have not been included in disposable income
calculations. This allows for a more consistent time
series as estimates of private health insurance payments
which they replaced are not readily available.
(5) In this paper average weekly earnings refers to average
weekly total earnings of all males.
(6) For a detailed review of Australian income distribution
data, see Ingles (1981).
(7) Full details of legislative changes that took place in the
social security system between 1908 and 1982 can be found
in Bancroft et al (1983).
(8) It is planned to implement annual indexation of these
payments from January 1988.
(9) In the 1986-87 Budget indexation increases were deferred
six weeks. Automatic increases now occur in the second
pay period of June and December. These increases are
still based on movements in the CPI over the six months to
the preceeding December and June respectively.
(10) Until 1975-76 a higher level of deduction was provided for
the first child and for student children over 16 years.
The tax rebates introduced in that year extended the
higher level to all full-time students under the age of 16
years. The analysis in this paper does not make any
assumptions about educational status of children. and
consequently the losses identified here would have been
greater for those who had two or more full-time student
children.
(11) Data from the 1981-82 Income and Housing Survey, indicate
that only 2.5 per cent of all families with children have
incomes of about 50 per cent of AWE. compared with 5.5 per
cent of income units without children.
34.
REFERENCES
Australian Bureau of Public Authority Finance: Taxation.

Statistics (Various Catalogue No 5506.0. Canberra
Years)
Australian Bureau of Taxation Revenue : Australia. Catologue

Statistics (Various No 5506.0. Canberra
Years)
Bancroft, H. Newton. Developments in Social Security: A

J. Roberts. P. and Compendium of Legislative Changes
Herscovitch, A. (1983) Since 1908. Research of Paper No. 20.
Development Division. Department of
Social Security. Canberra.
Cass. B. (1986) Income Support for Families with
Children. Issues Paper No.1 Social
Security Review, Department of Social
Security. Canberra.
Department of Social "The relationship between the social

Security (1979) security and the tax system in
Australia" in Social Security and
Taxation. Studies and Research No. 13.
International Social Security
Association, Geneva.
Department of the Reform of the Australian Tax System
Treasury (1985) (Draft White Paper). Canberra
Edwards. M. (1979) "The Tax-Transfer Treatment of Married
Couples" Australian Quarterly. June.
Edwards. M. (1983) "The income unit in the social security
system: explanation and evaluation".
Social Security Journal. December,
Department of Social Security. Canberra.
Harding, A. and Equity. Tax Reform and Redistribution.
Whiteford. P. (1985) Research Paper No. 28, Development
Division, Department of Social
Security. Canberra.
Ingles. D. (1981) Statistics on the Distribution of

Income and Wealth in Australia.
Research Paper No. 14. Development
Division. Department of Social
Security. Canberra.
Ingles. D. (1982) Financing Social Security: An Analysis
of the Contributory "Social Insurance"
Approach. Research Paper No. 19.
Development Division, Department of
35.
Ingles, D., Taxation Expenditures: Submission by the
Podger, A.S., Department of Social Security to the
Raymond. J.E. and Inquiry into Taxation Expenditures by
Jackson. W.S.B. the House of Representatives Standing
(1982) Committee on Expenditure. Research
Paper No. 17, Development Division,
Jackson, W.S.B. (1982) "Universal and selective income
support: some equity and efficiency
considerations", Social Security
Journal. June, Department of Social
Security, Canberra.
Keating, Hon P.J. Reform of the Australian Taxation
(1985) System. Statement by the Treasurer, the
Hon Paul Keating MP, Australian
Government Publishing Service, Canberra.
Keating , Hon P.J., Budget Statements 1986-87, Canberra.
Walsh, Hon P. (1986)
Keens C. and Fiscal Welfare: Some Aspects of
Cass, B. Australian Tax Policy. Class and Gender
(1982) Considerations, Report No. 24. Social
Welfare Research Centre. University of
New South Wales, Sydney.
Manning, I. and "The reform of taxation and social
Saunders, P. security in Australia", Australian
(1978) Economic Review. I. Melbourne.
Pech. J. (1986) The 'Greatest Asset Since Child
Endowment'? : A study of Low Income
Working Families Receiving Family
Income Supplement, Social Security
Review, Background/Discussion Paper
No. 9, Development Division, Department
of Social Security, Canberra.
Podger, A.S., The Relationship between the Australian
Raymond, J.E. and Social Security and Personal Income
Jackson, W.S.B. Taxation Systems - A Practical
(1980a) Examination. Research Paper No. 9,
Podger, A.S., The Finance of Social Security: Some
Raymond J.E. and implications of the Interaction Between
Jackson, W.S.B. Social Security and Personal Income Tax.
(1980b) Research Paper No. 11. Development
Security, Canberra.
36.
REFERENCES
Australian Bureau of Public Authority Finance: Taxation.

Statistics (Various Catalogue No 5506.0, Canberra
Years)
Australian Bureau of Taxation Revenue : Australia. Catologue

Statistics (Various No 5506.0. Canberra
Years)
Bancroft, H., Newton. Developments in Social Security: A

J., Roberts, P. and Compendium of Legislative Changes
Herscovitch, A. (1983) Since 1908. Research of Paper No. 20.
Cass, B. (1986) Income Support for Families with

Children. Issues Paper No.l, Social
Security Review. Department of Social
Security, Canberra.
Department of Social "The relationship between the social
Security (1979) security and the tax system in
Australia" in Social Security and
Taxation, Studies and Research No. 13,
International Social Security
Association, Geneva.
Department of the Reform of the Australian Tax System
Treasury (1985) (Draft White Paper), Canberra
Edwards, M. (1979) "The Tax-Transfer Treatment of Married
Couples" Australian Quarterly, June.
Edwards. M. (1983) "The income unit in the social security
system: explanation and evaluation".
Social Security Journal. December.
Harding. A. and Equity, Tax Reform and Redistribution.
Whiteford. P. (1985) Research Paper No.28, Development
Security. Canberra.
Ingles, D. (1981) Statistics on the Distribution of

Income and Wealth in Australia.
Research Paper No. 14. Development
Security, Canberra.
Ingles. D. (1982) Financing Social Security: An Analysis
of the Contributory "Social Insurance"
Approach. Research Paper No. 19.
Social Security, Canberra.
35.
Ingles, D., Taxation Expenditures: Submission by the
Podger, A.S., Department of Social Security to the
Raymond, J.E. and Inquiry into Taxation Expenditures by
Jackson. W.S.B. the House of Representatives Standing
(1982) Committee on Expenditure. Research
Paper No. 17, Development Division,
Jackson. W.S.B. (1982) "Universal and selective income
support: some equity and efficiency
considerations", Social Security
Journal. June. Department of Social
Security. Canberra.
Keating. Hon P.J. Reform of the Australian Taxation
(1985) System. Statement by the Treasurer, the
Hon Paul Keating MP, Australian
Government Publishing Service, Canberra.
Keating , Hon P.J., Budget Statements 1986-87, Canberra.
Walsh, Hon P. (1986)
Keens C. and Fiscal Welfare: Some Aspects of
Cass. 8. Australian Tax Policy. Class and Gender
(1982) Considerations. Report No. 24. Social
Welfare Research Centre, University of
New South Wales. Sydney.
Manning, I. and "The reform of taxation and social
Saunders, P. security in Australia", Australian
(1978) Economic Review. I, Melbourne.
Pech. J. (1986) The 'Greatest Asset Since Child
Endowment'? : A study of Low Income
Working Families Receiving Family
Income Supplement. Social Security
Review, Background/Discussion Paper
No. 9. Development Division, Department
of Social Security. Canberra.
Podger, A.S., The Relationship between the Australian
Raymond. J.E. and Social Security and Personal Income
Jackson, W.S.B. Taxation Systems - A Practical
(1980a) Examination. Research Paper No. 9.
Podger. A.S., The Finance of Social Security: Some
Raymond J.E. and implications of the Interaction Between
Jackson, W.S.B. Social Security and Personal Income Tax.
(1980b) Research Paper No. 11, Development
Division, Department of Social
Security, Canberra.
36.
Raymond, J. and Some Implications of the Interation of
Whiteford, P. (1984) the Personal Income Taxation and Social
Security Systems. Research Paper
No. 22. Development Division.
Department of Social Security, Canberra.
Richardson, S. "Income distribution, poverty and
(1979) redistributive policies" in Surveys of
Australian Economics. Volume 2.
F H Gruen (ed), George Allen + Unwin,
Sydney.
Saunders, P. Equity and the Impact on Families of
(1982) the Australian Tax - Transfer System.
Institute of Family Studies. Melbourne.
Whiteford, P. (1986) "Horizontal Equity in Tax Transfer
Arrangements" in Income Distribution,
Taxation and Social Security: Issues
of Current Concern, Report No. 55,
Social Welfare Research Centre,
University of New South Wales. Sydney.
37.
APPENDICES
APPENDIX PAGE
A SOCIAL SECURITY OUTLAYS AND NUMBERS OF RECIPIENTS 41
B COMMONWEALTH TAXATION REVENUE 45
C SOCIAL SECURITY PAYMENTS 49
D AVERAGE WEEKLY EARNINGS 59

E TAXATION COMPONENTS 63
F DISPOSABLE INCOMES 75
39.
TABLE PAGE
Al Nominal Outlays on Social Security Cash Payments 42
A2 Real Outlays on Social Security Cash Payments 42
A3 Real Outlays on Social Security

Cash Payments Per Head of Population 43
A4 Numbers of Social Security Recipients 43
41.
TABLE A1: NOMINAL OUTLAYS ON SOCIAL SECURITY CASH PAYMENTS TABLE A2: REAL OUTLAYS ON SOCIAL SECURITY CASH PAYMENTS
1964-65 to 1985-86 - ($'millions) 1964-65 to 1985-86 - 1985-86 Dollar Terms
Widows Widows
Pen. & Child Pen. & Child
Supp't Endow/ Supp't Endow/
Age Inval. Parent Unemp. Sick. Family Age Inval. Parent Unemp. Sick. Family
YEAR Pen. Pen. Benef Benef Benef Allow Total YEAR Pen. Pen. Benef Benef Benef Allow Total
1964-65 426.6 (1) 47.0 6.8 6.5 172.8 669.1 1964-65 2121.6 (1) 233.7 33.8 32.3 859.4 3327.5
1965-66 442.4 (1) 50.0 7.8 6.5 176.4 692.5 1965-66 2122.1 (1) 239.8 37.4 31.2 846.2 3321.8
1966-67 481.8 (1) 56.4 11.2 6.6 199.3 765.1 1966-67 2252.9 (1) 263.7 52.4 30.9 931.9 3577.5
1967-68 513.0 (1) 61.1 11.2 6.3 187.9 789.5 1967-68 2318.6 (1) 276.2 50.6 28.5 849.3 3568.2
1968-69 558.6 (1) 69.1 9.2 5.5 193.3 847.3 1968-69 2464.8 (1) 304.9 40.6 24.3 852.9 3738.7
1969-70 642.0 (1) 81.8 8.9 7.1 220.1 972.2 1969-70 2743.3 (1) 349.5 38.0 30.3 940.5 4154.1
1970-71 702.3 (1) 90.5 10.8 10.2 198.5 1025.2 1970-71 2861.2 (1) 368.7 44.0 41.6 808.7 4176.8
1971-72 680.3 138.2 104.6 26.0 15.9 216.6 1027.4 1971-72 2593.9 526.9 398.8 99.1 60.6 825.9 3917.3
1972-73 887.8 184.7 140.5 46.6 26.6 253.9 1198.6 1972-73 3196.5 665.0 505.9 167.8 95.8 914.2 4315.5
1973-74 1146.4 226.0 221.6 58.2 41.4 225.4 1942.0 1973-74 3650.3 719.6 705.6 185.3 131.8 717.7 6183.6
1974-75 1612.5 306.5 317.5 251.7 62.8 224.9 2802.2 1974-75 4399.6 836.3 866.3 686.7 171.3 613.6 7645.6
1975-76 2129.4 407.1 452.5 513.9 92.2 265.5 3906.6 1975-76 5148.6 984.3 1094.1 1242.6 222.9 641.9 9445.7
1976-77 2483.6 511.0 528.7 618.0 105.4 1023.9 5330.6 1976-77 5268.3 1084.0 1121.5 1310.9 223.6 2170.0 11307.6
1977-78 2933.9 598.4 632.3 794.1 117.9 1038.1 6188.3 1977-78 5688.0 1160.1 1225.9 1539.5 228.6 2012.6 11997.4
1978-79 3229.0 690.4 726.0 910.0 113.3 974.9 6745.8 1978-79 5785.0 1236.9 1300.7 1630.3 203.0 1746.6 12085.5
1979-80 3508.8 796.4 821.0 925.2 126.6 1035.4 7289.1 1979-80 5708.5 1295.7 1335.7 1505.2 206.0 1684.5 11858.7
1980-81 3935.8 880.8 1054.2 995.8 174.5 950.4 8111.7 1980-81 5852.5 1309.7 1567.6 1480.8 259.5 1413.2 12062.1
1981-82 4506.9 977.1 1323.3 1224.3 225.1 1041.8 9433.2 1981-82 6070.4 1316.1 1782.4 1649.0 303.2 1403.2 12705.8
1982-83 4867.6 1068.4 1485.8 2249.0 270.8 1373.7 11485.4 1982-83 5879.9 1290.6 1794.8 2716.7 327.1 1659.4 13873.9
1983-84 5313.7 1252.7 1719.1 2912.3 335.9 1506.3 13272.8 1983-84 5999.6 1414.4 1941.0 3288.2 379.3 1700.7 14986.1
1984-85 5638.9 1469.8 1955.6 2983.6 364.6 1505.0 14175.2 1984-85 6111.5 1593.0 2119.5 3233.7 395.2 1631.1 15363.4
1985-86 5897.1 1673.5 2162.5 3122.1 391.8 1537.6 15069.2 1985-86 5897.1 1673.5 2162.5 3122.1 391.8 1537.6 15069.2
.======================== =========
NOTES: NOTES:
1 - Prior to 1971-72 outlays on invalid pensions are included 1 - Prior to 1971-72 outlays on invalid pensions are included
in age pension outlays. in age pension outlays.
SOURCES: SOURCES:
ANNUAL REPORT, DEPARTMENT OF SOCIAL SECURITY, Various Issues. ANNUAL REPORT, DEPARTMENT OF SOCIAL SECURITY, Various Issues.
TABLE A3: REAL OUTLAYS ON SOCIAL SECURITY CASH PAYMENTS PER TABLE A4: NUMBERS OF SOCIAL SECURITY RECIPIENTS ('000) -
HEAD OF POPULATION: 1964-65 TO 1985-86 1964-65 to 1984-85
1985-86 Dollar Terns ($/Year) ============
============
========= ========
========================= Widows Child
Widows Pen. & Endow/
Pen. & Child Supp't Total Family
Supp't Endow/ Age Inval . Parent Unemp. Sick. Pen. & Allow.
Age Inval. Parent Unemp. Sick. Family YEAR Pen. Pen. Benef . Benef. Benef. Benef. (1)
YEAR Pen. Pen. Benef Benef. Benef. Allow Total
1964-65 613.6 120.3 65.4 13.7 10.5 826.0 3710.1
1964-65 181.86 (1) 20.04 2.90 2.77 73.67 285.23 1965-66 641.0 119.9 68.6 14.9 10.0 856.9 3762.2
1965-66 178.58 (1) 20.18 3.15 2.62 71.21 279.54 1966-67 655.7 126.6 72.9 20.7 10.1 888.2 3834.4
1966-67 186.39 (1) 21.82 4.33 2.55 77.10 295.97 1967-68 687.5 128.3 75.1 21.5 9.9 924.9 3890.2
1967-68 188.48 (1) 22.45 4.11 2.31 69.03 290.05 1968-69 711.2 136.0 77.9 17.8 8.4 955.7 3995.4
1968-69 196.20 (1) 24.27 3.23 1.93 67.89 297.61
1969-70 785.7 150.0 86.9 13.2 8.6 1049.2 4078.8
1969-70 214.10 (1) 27.28 2.97 2.37 73.40 324.21 1970-71 815.0 149.8 90.4 15.0 9.5 1084.5 4155.4
1970-71 218.96 (1) 28.22 3.37 3.18 61.89 319.64 1971-72 840.2 155.0 92.8 29.1 11.9 1133.7 4234.2
1971-72 194.97 39.61 29.98 7.45 4.56 62.08 294.45 1972-73 950.5 171.5 105.7 39.6 16.2 1288.5 4238.6
1972-73 236.70 49.24 37.46 12.42 7.09 67.69 319.56 1973-74 1049.1 182.6 141.6 34.2 20.7 1433.6 4260.4
1973-74 266.01 52.44 51.42 13.50 9.61 52.30 450.62
1974-75 1119.1 197.7 156.8 116.6 24.3 1622.5 4283.3
1974-75 316.68 60.19 62.35 49.43 12.33 44.17 550.32 1975-76 1182.2 219.7 175.0 191.7 28.1 1808.5 4292.4
1975-76 366.89 70.14 77.97 88.54 15.89 45.75 673.10 1976-77 1230.5 246.6 190.4 216.9 32.4 1966.3 4302.0
1976-77 371.21 76.38 79.02 92.37 15.75 152.90 796.74 1977-78 1293.5 254.0 207.4 265.8 34.7 2094.2 4304.3
1977-78 396.12 80.79 85.37 107.22 15.92 140.16 835.52 1978-79 1322.8 276.0 223.2 306.2 33.4 2187.1 4230.6
1978-79 398.53 85.21 89.60 112.31 13.98 120.32 832.58
1979-80 1352.8 289.4 236.6 306.3 36.1 2257.8 4223.9
1979-80 388.46 88.17 90.89 102.43 14.02 114.63 806.97 1980-81 1376.7 279.0 272.3 310.0 44.5 2318.4 4227.2
1980-81 392.17 87.77 105.04 99.22 17.39 94.70 808.27 1981-82 1394.6 271.5 288.0 332.0 48.6 2423.3 4254.5
1981-82 399.94 86.71 117.43 108.64 19.98 92.45 837.10 1982-83 1417.2 277.3 304.8 540.2 57.7 2731.6 4303.3
1982-83 382.34 83.92 116.71 176.65 21.27 107.90 902.16 1983-84 1382.7 307.8 316.6 619.6 63.2 2686.1 4326.0
1983-84 385.68 90.92 124.78 211.38 24.38 109.33 963.36
1984-85 1355.3 335.0 327.9 581.7 62.4 2675.8 4323.5
1984-85 388.23 :101.19 134.64 205.42 25.10 103.62 975.95 1984-85 1348.8 357.0 332.4 559.2 63.5 2706.1 4191.4
1985-86 370.63 105.18 135.91 196.22 24.62 96.64 947.09 ========= ========
=========== ========== =========
NOTES:
NOTES:
1 - Number of children for whom the payment is made.
1 - Prior to 1971-72 outlays on invalid pensions are included
in age pension outlays.
SOURCES:
SOURCES: ANNUAL REPORT, DEPARTMENT OF SOCIAL SECURITY, Various Issues.

ANNUAL REPORT, DEPARTMENT OF SOCIAL SECURITY, Various Issues.
APPENDIX B - COMMONWEALTH TAXATION REVENUE
TABLE PAGE
B1 Commonwealth Taxation Revenue 46
B2 Commonwealth Taxation Revenue Per Head of Population .. 46
B3 Commonwealth Taxation Revenue As
Percentages of Gross Domestic Product 47
45.
TABLE B1: COMMONWEALTH TAXATION REVENUE - 1964-65 To 1985-86 TABLE B2: COMMONWEALTH TAXATION REVENUE PER HEAD OF POPULATION
1964-65 To 1985-86
Real Terms
Nominal Terms (1984-85 Dollars) Real Tax Revenue Tax Revenue Per
Income Taxes Taxation Revenue (1985-86 Dollars) Head of Pop as
Total Income Total Income As Percentage Per Head of Pop Per Head of Pop Per Cent of AWE
YEAR Tax.(l) Taxes Tax.(l) Taxes Of Total Taxes
YEAR Total(1) Income Total(1) Income Total(l) Income
$'m $'m $'m $'m %
1964-65 3818 1569 18988 7803 41.1 $/yr $/yr $/yr $/yr % %
1965-66 4221 1729 20247 8294 41.0 1964-65 327.30 134.50 1627.60 668.90 12.1 5.0
1966-67 4491 1920 21000 8978 42.8 1965-66 355.20 145.50 1703.90 697.90 12.6 5.2
1967-68 4951 2175 22377 9830 43.9 1966-67 371.50 158.80 1737.40 742.80 12.3 5.3
1968-69 5527 2377 24388 10488 43.0 1967-68 402.50 176.80 1819.00 799.10 12.6 5.5
1968-69 440.00 189.20 1941.30 834.90 12.8 5.5
1969-70 6378 2855 27253 12199 44.8
1970-71 7183 3175 29263 12935 44.2 1969-70 497.80 222.80 2127.00 - 952.10 13.4 6.0
1971-72 7939 3765 30270 14355 47.4 1970-71 549.70 243.00 2239.40 989.90 13.4 5.9
1972-73 8471 4085 30500 14708 48.2 1971-72 596.80 283.00 2275.30 1079.00 13.2 6.2
1973-74 10917 5485 34761 17465 50.2 1972-73 627.30 302.50 2258.50 1089.10 12.6 6.1
1973-74 795.50 399.70 2533.20 1272.70 13.8 6.9
1974-75 14212 7708 38777 21031 54.2
1975-76 16938 9213 40954 22276 54.4 1974-75 1023.00 554.80 2791.10 1513.80 14.1 7.6
1976-77 19806 11047 42014 23434 55.8 1975-76 1207.00 656.50 2918.40 1587.40 14.6 7.9
1977-78 21501 12122 41684 23501 56.4 1976-77 1395.60 778.40 2960.30 1651.20 14.9 8.3
1978-79 23533 12797 42161 22927 54.4 1977-78 1497.40 844.20 2903.00 1636.70 14.6 8.2
1978-79 1621.20 881.60 2904.50 1579.40 14.7 8.0
1979-80 27518 15033 44769 24457 54.6
1980-81 32681 17532 48597 26070 53.6 1979-80 1872.60 1023.00 3046.50 1664.30 15.4 8.4
1981-82 37939 21205 51101 28561 55.9 1980-81 2189.90 1174.80 3256.40 1746.90 15.9 8.5
1982-83 41009 22943 49537 27714 55.9 1981-82 2499.50 1397.10 3366.70 1881.70 15.8 8.9
1983-84 44748 24692 50524 27879 55.2 1982-83 2666.60 1491.90 3221.20 1802.10 15.2 8.5
1983-84 2876.60 1587.30 3247.90 1792.20 15.1 8.3
1984-85 52887 29289 57320 31744 55.4
1985-86(2) 58399 32734 58399 32734 56.1 1984-85 3359.60 1860.60 3641.20 2016.50 16.5 9.1
1985-86(2;) 3670.40 2057.30 3670.40 2057.30 17.0 9.5
NOTES:
NOTES:
1 - Includes fees and fines levied by the Commonwealth.
2 ~ Taxation statistics for 1985-86 are drawn from 1986-87
Budget Papers. They are not entirely comparable with those 2 - Taxation statistics for 1985-86 are drawn from 1986-87
for earlier years. Budget Papers. They are not entirely comparable with those
for earlier years.
SOURCES:
SOURCES:
PUBLIC AUTHORITY FINANCE: TAXATION, Australian Bureau of
Statistics, Table 5, Various Years. PUBLIC AUTHORITY FINANCE: TAXATION, Australian Bureau of
Statistics, Table 5, Various Years.
TAXATION REVENUE: AUSTRALIA, Australian Bureau of Statistics,
Table 5, Various Years. TAXATION REVENUE: AUSTRALIA, Australian Bureau of Statistics,
Table 5, Various Years.
BUDGET STATEMENTS 1986-87, Budget Paper No 1.
TABLE B3: COMMONWEALTH TAXATION REVENUE AS PERCENTAGE OF
GROSS DOMESTIC PRODUCT - 1964-65 To 1985-86
Index of Percentages
1976-77 = 100.0
Total Income
YEAR Tax.(1) Taxes Total Income
% %
1964-65 19.0 7.8 82.0 60.4
1965-66 20.0 8.2 86.2 63.3
1966-67 19.3 8.3 83.3 63.9
1967-68 20.0 8.8 86.0 67.8
1968-69 19.7 8.5 85.0 65.6
1969-70 20.5 9.2 88.5 71.0
1970-71 21.0 9.3 90.3 71.5
1971-72 20.7 9.8 89.1 75.8
1972-73 19.4 9.3 83.4 72.1
1973-74 20.8 10.5 89.7 80.8
1974-75 22.5 12.2 96.8 94.2
1975-76 22.7 12.3 97.7 95.3
1976-77 23.2 13.0 100.0 100.0
1977-78 23.2 13.1 99.9 100.9
1978-79 22.4 12.2 96.2 93.8
1979-80 23.2 12.7 99.7 97.7
1980-81 24.2 13.0 104.1 100.1
1981-82 24.8 13.9 106.9 107.2
1982-83 24.5 13.7 105.4 105.7
1983-84 23.6 13.0 101.8 100.7
1984-85 25.2 14.0 108.6 107.8
1985-86(2) 25.2 14.1 108.4 108.9
NOTES:

2 - Taxation statistics for 1985-86 are drawn from 1986-87
Budget Papers. They are not entirely comparable with
for earlier years.
SOURCES:
PUBLIC AUTHORITY FINANCE: TAXATION, Australian Bureau of

TAXATION REVENUE: AUSTRALIA, Australian Bureau of

APPENDIX C - SOCIAL SECURITY PAYMENTS
TABLE PAGE
Cl Changes to Social Security Rates of Payments 50
C2 Nominal Maximum Annual Payment Rates 52
C3 Real Maximum Annual Payment Rates 54
C4 Maximum Payment Rates As Proportions of AWE 56
49.
TABLE Cl.l: CHANGES TO SOCIAL SECURITY RATES OF PAYMENTS ($/wk) - TABLE C1.2: CHANGES TO SOCIAL SECURITY RATES OF PAYMENTS ($/wk) -
Pension Payments - 1964-65 to 1985-86 Sickness Benefit Payments - 1964-65 to 1985-86
Additional Pension Addit. Benefit(3)

DATE OF CHANGE Standard Married Mothers/ Single Married Mothers/
Pension
(1)
Pension First Other Guardians Rent 21+ Yrs Person First Other Guardians Rent
Age/Inv Wid/SPB Rate Rate Child(2) Children Allow(3) Assist DATE Rated) Rate(2) Child Children Allowance Assist
14-11-63 08-10-63 11.50 10.50 1.50 1.50 4.00 1.00 01-03-62 8.25 14.25 1.50 1.50 0.00 0.00
" "
01-10-64 06-10-64 12.00 11.00 " " " "
27-09-69 10.00 17.00 2.50 3.50
" " " " " " " "
14-10-65 19-10-65 2.00 28-09-70 15.50 22.50
" "
2.00
"
" " " " "
13-10-66 04-10-66 13.00 11.75 01-04-71 16.00 23.00
" "
"
10-10-68 01-10-68 14.00 12.50 2.50 2.50 " 29-09-71 17.25 25.25 4.50 4.50
" " " " " "
09-10-69 30-09-69 15.00 13.25 3.50 6.00 24-04-72 18.25 26.25
" "
" " " "
08-10-70 29-09-70 15.50 13.75 27-09-72 20.00 28.00
"
"
"
4.00
"
" " " "
08-04-71 13-04-71 16.00 14.25 16-03-73 21.50 37.50 "
" "
07-10-71 12-10-71 17.25 15.25 4.50 4.50 " " 26-09-73 23.00 40.50 5.00 5.00
"
" " " " "
04-05-72 25-04-72 18.25 16.00 " 22-03-74 26.00 45.50 "
" "
" " " "
05-10-72 10-10-72 20.00 17.25 "
4.00 31-07-74 31.00 51.50
"
"
14-12-72 05-12-72 21.50 18.75 " " " " 01-11-74 5.50 5.50 " 5.00
" " "
04-10-73 09-10-73 23.00 20.25 5.00 5.00 " 19-05-75 36.00 60.00 7.00 7.00
" "
" "
04-04-74 26-03-74 26.00 22.75 " " 01-11-75 38.75 64.50 7.50 7.50
" "
08-08-74 13-08-74 31.00 25.75 " " " " 01-05-76 41.25 68.50 "
" " " " " "
14-11-74 05-11-74 5.50 5.50 5.00 01-11-76 43.50 72.50
" " " "
01-05-75 06-05-75 36.00 30.00 7.00 7.00 " " 01-05-77 47.10 78.50
" " " "
13-11-75 38.75 32.25 7.50 7.50 " " 01-11-77 49.30 82.20
" " "
13-05-76 41.25 34.25 " " " "
01-05-78 51.45 85.80 "
" " "
11-11-76 43.50 36.25 " " " "
01-11-78 53.20 88.70 "
" " " "
12-05-77 47.10 39.25 " " " " 01-11-79 57.90 96.50
" " " "
10-11-77 49.30 41.10 " " " " 01-05-80 61.05 101.70
"
" " " "
11-05-78 51.45 42.90 01-11-80 64.10 106.80 10.00 10.00 "
09-11-78 53.20 44.35 " " " " 01-05-81 66.65 111.10 ' " " "
" " " "
08-11-79 57.90 48.25 " " " 01-11-81 69.70
"
116.20
" "
"
08-05-80 61.05 50.85 " " " " 01-02-82 "

"
"
" "
8.00
"
06-11-80 64.10 53.40 10.00 10.00 8.00 " 01-05-82 74.15 123.60
07-05-81 66.65 55.55 " " " " 01-11-82 77.25 128.80 ' " "
10.00
" " " " " " "
11-02-82 " " 8.00 01-05-83 82.35 137.30
" "
06-05-82 74.15 61.80 " " " " 01-11-83 85.90 143.20 12.00 12.00
" " " "
04-11-82 77.25 64.40 10.00 01-05-84 89.40 149.10 " " 8.00
05-05-83 82.35 68.65 " " " 01-11-84 91.90 153.30 14.00 14.00
"
10.00 15.00
" " " "
03-11-83 85.90 71.60 12.00 12.00 01-05-85 94.30 157.30 "
" "
"
03-05-84 89.40 74.55 " " " 01-11-85 97.96 163.30 16.00
"
16.00
"
01-11-84 91.90 76.65 14.00 14.00 10.00 15.00 01-05-86 102.10 170.30 " 12.00
" " " "
02-05-85 94.30 78.65
" "
14-11-85 97.90 81.65 16.00 16.00 NOTES:
"
01-05-86 102.10 85.15 " " 12.00
1 - This rate includes the higher rate of benefit paid to longer
NOTES: term sickness beneficiaries between September 1969 and March
1973. The lower rate is equivalent to the adult unemployment
1 - Class B and C widow pensioners did not become eligible for the benefit rate in Table B1.3,
higher standard rate of pension until 5 December 1972.
2 - Before March 1973 a married beneficiary was paid the single rate
2 - Until 1968 this payment was known as child's allowance. It was not of benefit plus an additional benefit for a dependent spouse.
paid to all age pensioners until 1965. This rate includes this additional benefit as well as the higher
rate refered to in note 1.
3 - This payment was not extended to age and invalid pensioners until
14 October 1965. Between September 1969 and May 1984 a rate $2 3 - The same rate of additional benefit for children was payable to
per week lower was paid to sole parents who had no child under unemployment beneficiaries throughout the period.
6 or invalid.
TABLE C1.3: CHANGES TO SOCIAL SECURITY RATES OF PAYMENTS ($/wk) - TABLE C1.4: CHANCES TO SOCIAL SECURITY RATES OF PAYMENTS ($/wk) -
Unemployment Benefit Payments - 1964-65 to 1985-86 Child Endowment/Family Allowances - 1964-65 to 1985-86
Single Person Rate Payment for the:

Married
21 Years 18 - 20 16 - 17 16 - 17 Person Rent First Second Third Fourth Fifth
DATE and Over Years Yrs (1) Yrs (2) Rate (3) Assist DATE Child Child Child Child Child
01-03-62 8.25 4.75 3.50 3.50 14.25 0.00 11-02-64 0.50 1.00 1.50 1.50 1.50
27-09-69 10.00 6.00 4.50 4.50 17.00 17-10-67 " " "
1.75 2.00
29-09-71 " " " "
18.00 09-11-71 " "
2.00 2.25 2.50
25-02-72 17.00 11.00 7.50 7.50 25.00 13-07-76 3.50 5.00 6.00 6.00 7.00
16-03-73 21.50 21.50 21.50 21.50 37.50 15-06-79(1) 3.50 4.99 5.98 5.98 6.98
26-09-73 23.00 23.00 23.00 23.00 40.50 15-01-82 " "
8.98 8.98 10.48
22-03-74 26.00 26.00 26.00 26.00 45.50 14-11-82 5.25 7.49 " " "
31-07-74 31.00 31.00 31.00 31.00 51.50

19-05-75 36.00 36.00 36.00 36.00 60.00
" "
01-11-75 38.75 38.75 64.50
01-05-76 41.25 41.25 " "
68.50 NOTES:
"
01-11-76 43.50 43.50 "
72.50
01-05-77 47.10 47.10 " "
78.50 1 - The slight reduction in rates for second and subsequent children
01-11-77 49.30 49.30 " "
82.20 is a result of the shift to monthly as opposed to weekly rates
01-05-78 51.45 51.45 " "
85.80 of payments.
" " "
01-11-78 "
88.70
" " " "
01-11-79 96.50
" "
01-05-80 " "
101.70
" "
01-11-80 53.45 53.45 106.80
01-05-81 " " " "
111.10
"
01-11-81 58.10 58.10 "
116.20
" "
01-05-82 " "
123.60
01-11-82 64.40 64.40 40.00 40.00 128.80
"
01-05-83 68.65 68.65 "
137.30
01-11-83 73.60 73.60 45.00 45.00 143.20
" "
01-05-84 78.60 78.60 149.10
01-11-84 81.10 81.10 45.00 50.00 153.30
" "
01-05-85 85.20 85.20 157.30
"
01-11-85 91.45 88.20 50.00 163.30
" " "
01-05-86 95.40 170.30 10.00
NOTES:
1 - This is the rate payable to beneficiaries who have been in
receipt of benefit for less than 6 months.
2 - This is the rate payable to beneficiaries who have been in
receipt of benefit for more than 6 months.
3 - Before March 1973 a married beneficiary was paid the single rate
of benefit plus an additional benefit for a dependent spouse.
This rate includes this additional benefit.
TABLE C2.1: NOMINAL MAXIMUM PAYMENT RATES TABLE C2.2: NOMINAL MAXIMUM PAYMENT RATES
1964-65 to 1985-86 1964-65 to 1985-86
Single Rates of Pension/Benefit(1) Married Rates of Pension/Benefit(1)
Benefit Unemploy Sickness

YEAR Pension Benefit Benefit
Standard Unemploy Sickness 16 - 17
YEAR Pension 21+ Yrs 21+ Yrs Years $/yr
1964-65 566.00 741.00 741.00
$/yr $/yr $/yr $/yr 1965-66 572.00 741.00 741.00
1964-65 618.00 429.00 429.00 182.00 1966-67 565.00 741.00 741.00
1965-66 624.00 429.00 429.00 182.00 1967-68 611.00 741.00 741.00
1966-67 662.00 429.00 429.00 182.00 1968-69 639.50 741.00 741.00
1967-68 676.00 429.00 429.00 182.00
1968-69 714.00 429.00 429.00 182.00 1969-70 678.50 845.50 845.50
1970-71 714.00 884.00 1099.00
1969-70 766.00 495.50 495.50 220.00 1971-72(2) 786.74 1043.85 1292.30
1970-71 805.00 520.00 735.00 234.00 1972-73 927.00 1500.00 1608.00
1971-72(2) 889.78 641.33 889.78 286.00 1973-74 1070.00 2140.00 2140.00
1972-73 1064.00 956.00 1064.00 614.00
1973-74 1220.00 1220.00 1220.00 1220.00 1974-75 1369.50 2705.00 2705.00
1975-76 1652.50 3305.00 3305.00
1974-75 1642.00 1622.00 1622.00 1622.00 1976-77 1873.00 3746.00 3746.00
1975-76 1985.50 1985.50 1985.50 1872.00 1977-78 2118.30 4236.60 4236.60
1976-77 2250.30 2250.30 2250.30 1872.00 1978-79 2280.10 4560.20 4560.20
1977-78 2541.20 2541.20 2541.20 1872.00
1978-79 2734.90 2675.40 2734.90 1872.00 1979-80 2459.60 4919.20 4919.20
1980-81 2748.10 5496.20 5496.20
1979-80 2951.40 2675.40 2951.40 1872.00 1981-82 3004.90 6009.80 6009.80
1980-81 3298.70 2743.40 3298.70 1872.00 1982-83(2) 3344.66 6689.32 6689.32
1981-82 3605.10 2937.50 3605.10 1872.00 1983-84 3705.50 7411.00 7411.00
1982-83(2) 4012.38 3280.53 4012.38 2010.67
1983-84 4445.00 3798.00 4445.00 2260.00 1984-85 3972.20 7944.40 7944.40
1985-86 4226.80 8453.60 8453.60
1984-85 4762.80 4218.20 4762.80 2520.00
1985-86 5068.00 4682.40 5068.00 2600.00
Notes:
Notes: 1 - Benefit paydays are assumed to fall

on pension paydays.
1 - Benefit paydays are assumed to fall
on pension paydays. 2 - Payments have been averaged to exclude
the effect of the 27th payday in this year.
2 - Payments have been averaged to exclude
TABLE C2.3: NOMINAL MAXIMUM PAYMENT RATES TABLE C2.4: NOMINAL MAXIMUM PAYMENT RATES
1964-65 to 1985-86 1964-65 to 1985-86
Additional Payments for Pensioners/Beneficiaries(1) Family Allowances for the First Five Children
Additional Pension Mothers/ First Second Third Fourth Fifth

Guardians Rent Assistance YEAR Child Child Child Child Child
First Other Allow for
YEAR Child Child Pensioners Pensioner Sick Ben $/yr $/yr $/yr $/yr $/yr
1964-65 26.00 52.00 78.00 78.00 78.00
$/yr $/yr $/yr $/yr $/yr 1965-66
1966-67
26.00 52.00 78.00
78.00
78.00
78.00
78.00
78.00
1964-65 78.00 78.00 208.00 52.00 0.00 26.00 52.00
1965-66 78.00 78.00 208.00 90.00 0.00 1967-68 26.00 52.00 78.00 87.00 96.00
1966-67 78.00 78.00 • 208.00 104.00 0.00 1968-69 26.00 52.00 78.00 91.00 104.00
1967-68 78.00 78.00 208.00 104.00 0.00
1968-69 116.00 116.00 208.00 104.00 0.00 1969-70 26.00 52.00 78.00 91.00 . 104.00
1970-71 26.00 52.00 78.00 91.00 104.00
1969-70 130.00 168.00 284.00 104.00 0.00 1971-72 26.00 52.00 96.00 109.00 122.00
1970-71 130.00 182.00 312.00 104.00 76.00 1972-73 26.00 52.00 104.00 117.00 130.00
1971-72(2) 207.04 220.52 312.00 104.00 104.00 1973-74 26.00 52.00 104.00 117.00 130.00
1972-73 234.00 234.00 312.00 184.00 184.00
1973-74 254.00 254.00 312.00 208.00 208.00 1974-75 26.00 52.00 104.00 117.00 130.00
1975-76 26.00 52.00 104.00 117.00 130.00
1974-75 292.00 292.00 312.00 242.00 242.00 1976-77 182.00 260.00 312.00 312.00 364.00
1975-76 381.00 381.00 312.00 260.00 260.00 1977-78 182.00 260.00 312.00 312.00 364.00
1976-77 390.00 390.00 312.00 260.00 260.00 1978-79 182.00 260.00 312.00 312.00 364.00
1977-78 390.00 390.00 312.00 260.00 260.00
1978-79 390.00 390.00 312.00 260.00 260.00 1979-80 182.40 260.40 312.00 312.00 364.20
1980-81 182.40 260.40 312.00 312.00 364.20
1979-80 390.00 390.00 312.00 260.00 260.00 1981-82 182.40 260.40 390.00 390.00 455.40
1980-81 475.00 475.00 380.00 260.00 260.00 1982-83 243.20 347.20 468.00 468.00 546.60
1981-82 520.00 520.00 416.00 320.00 320.00 1983-84 273.60 390.60 468.00 468.00 546.60
1982-83(2) 520.00 520.00 416.00 485.33 485.33
1983-84 592.00 592.00 416.00 520.00 520.00 1984-85 273.60 390.60 468.00 468.00 546.60
1985-86 273.60 390.60 468.00 468.00 546.60
1984-85 696.00 696.00 488.00 700.00 700.00
1985-86 796.00 796.00 540.00 780.00 780.00
Notes:
1 - Benefit paydays are assumed to fall on pension paydays.
2 - Payments have been averaged to exclude the effect
of the 27th payday in this year.
TABLE C3.1: REAL MAXIMUM PAYMENT RATES TABLE C3.2: REAL MAXIMUM PAYMENT RATES
1964-65 to 1985-86 - 1985-86 Dollar Terms 1964-65 to 1985-86 - 1985-86 Dollar Terras
Single Rates of Pension/Benefit(1) Married Rates of Pension/Benefi(1)t

YEAR Pension 21+ Yrs 21+ Yrs Years $/yr $/yr $/yr
1964-65 2814.90 3685.20 3685.20
$/yr $/yr $/yr $/yr 1965-66 2743.80 3554.40 3554.40
1964-65 3073.50 2133.50 2133.50 905.10 1966-67 2642.00 3465.00 3465.00
1965-66 2993.20 2057.80 2057.80 873.00 1967-68 2761.60 3349.10 3349.10
1966-67 3095.60 2006.00 2006.00 851.10 1968-69 2821.80 3269.60 3269.60
1967-68 3055.40 1939.00 1939.00 822.60
1968-69 3150.50 1892.90 1892.90 803.10 1969-70 2899.20 3612.80 3612.80
1970-71 2908.80 3601.40 4477.30
1969-70 3273.10 2117.30 2117.30 940.10 1971-72(2) 2999.70 3980.00 4927.30
1970-71 3279.50 2118.50 2994.40 953.30 1972-73 3337.60 5400.70, 5789.60
1971-72(2) 3392.60 2445.30 3392.60 1090.50 1973-74 3407.00 6814.10 6814.10
1972-73 3830.90 3442.10 3830.90 2210.70
1973-74 3884.70 3884.70 3884.70 3884.70 1974-75 3736.60 7380.40 7380.40
1975-76 3995.60 7991.10 7991.10
1974-75 4480.10 4425.50 4425.50 4425.50 1976-77 3973.10 7946.20 7946.20
1975-76 4800.70 4800.70 4800.70 4526.30 1977-78 4106.80 8213.60 8213.60
1976-77 4773.50 4773.50 4773.50 3971.00 1978-79 4085.00 8169.90 8169.90
1977-78 4926.70 4926.70 4926.70 3629.30
1978-79 4899.80 4793.20 4899.80 3353.80 1979-80 4001.60 8003.10 8003.10
1980-81 4086.40 8172.80 8172.80
1979-80 4801.70 4352.60 4801.70 3045.60 1981-82 4047.40 8094.70 8094.70
1980-81 4905.20 4079.40 4905.20 2783.70 1982-83(2) 4040.20 8080.40 8080.40
1981-82 4855.80 3956.60 4855.80 2521.40 1983-84 4187.00 8374.00 8374.00
1982-83(2) 4846.80 3962.80 4846.80 2428.80
1983-84 5022.60 4291.50 5022.60 2553.70 1984-85 4305.10 8610.30 8610.30
1985-86 4226.80 8453.60 8453.60
1984-85 5162.00 4571.80 5162.00 2731.20
1985-86 5068.00 4682.40 5068.00 2600.00
Notes:

on pension paydays.
TABLE C3.3: REAL MAXIMUM PAYMENT RATES TABLE C3.4: REAL MAXIMUM PAYMENT RATES
1964-65 to 1985-86 - 1985-86 Dollar Terms 1964-65 to 1985-86 - 1985-86 Dollar Terms
Additional Payments for Pensioners/Beneficiaries(1) Family Allowances for the First Five Children

YEAR Child Child Pensioners Pensioner Sick Ben $/yr $/yr $/yr $/yr $/yr
1964-65 129.30 258.60 387.90 387.90 387.90
$/yr $/yr $/yr $/yr $/yr 1965-66 124.70 249.40 374.10 374.10 374.10
1964-65 387.90 387.90 1034.40 258.60 0.00 1966-67 121.60 243.20 364.70 364.70 364.70
1965-66 374.10 374.10 997.70 431.70 0.00 1967-68 117.50 235.00 352.50 393.20 433.90
1966-67 364.70 364.70 972.60 486.30 0.00 1968-69 114.70 229.40 344.20 401.50 458.90
1967-68 352.50 352.50 940.10 470.10 0.00
1968-69 511.80 511.80 917.80 458.90 0.00 1969-70 111.10 222.20 333.30 388.80 444.40
1970-71 105.90 211.80 317.80 370.70 423.70
1969-70 555.50 717.90 1213.50 444.40 0.00 1971-72 99.10 198.30 366.00 415.60 465.20
1970-71 529.60 741.50 1271.10 423.70 309.60 1972-73 93.60 187.20 374.50 421.30 468.10
1971-72(2) 789.40 840.80 1189.60 396.50 396.50 1973-74 82.80 165.60 331.20 372.50 413.90
1972-73 842.50 842.50 1123.40 662.50 662.50
1973-74 808.80 808.80 993.50 662.30 662.30 1974-75 70.90 141.90 283.80 319.20 354.70
1975-76 62.90 125.70 251.50 282.90 314.30
1974-75 796.70 796.70 851.30 660.30 660.30 1976-77 386.10 551.50 661.80 661.80 772.10
1975-76 921.20 921.20 754.40 628.70 628.70 1977-78 352.80 504.10 604.90 604.90 705.70
1976-77 827.30 827.30 661.80 551.50 551.50 1978-79 326.10 465.80 559.00 559.00 652.10
1977-78 756.10 756.10 604.90 504.10 504.10
1978-79 698.70 698.70 559.00 465.80 465.80 1979-80 296.70 423.60 507.60 507.60 592.50
1980-81 271.20 387.20 463.90 463.90 541.60
1979-80 634.50 634.50 507.60 423.00 423.00 1981-82 245.70 350.70 525.30 525.30 613.40
1980-81 706.30 706.30 565.10 386.60 386.60 1982-83 293.80 419.40 565.30 565.30 660.30
1981-82 700.40 700.40 560.30 431.00 431.00 1983-84 309.20 441.40 528.80 528.80 617.60
1982-83(2) 628.10 628.10 502.50 586.30 586.30
1983-84 668.90 668.90 470.10 587.60 587.60 1984-85 296.50 423.30 507.20 507.20 592.40
1985-86 273.60 390.60 468.00 468.00 546.60
1984-85 754.30 754.30 528.90 758.70 758.70
1985-86 796.00 796.00 540.00 780.00 780.00
Notes:
2 - Payments have been averaged to exclude the effect
TABLE C4.1: MAXIMUM PAYMENT RATES AS PROPORTIONS OF AWE TABLE C4.2: MAXIMUM PAYMENT RATES AS PROPORTIONS OF AWE
1964-65 to 1985-86 1964-65 to 1985-86
Single Rates of Pension/Benefit(1) Married Rates of Pension/Benefit(1)

YEAR Pension 21+ Yrs 21+ Yrs Years % % %
1964-65 20.9 27.3 27.3
% % % % 1965-66 20.2 26.1 26.1
1964-65 22.8 15.8 15.8 6.7 1966-67 18.6 24.4 24.4
1965-66 22.0 15.1 15.1 6.4 1967-68 19.0 23.1 23.1
1966-67 21.8 14.2 14.2 6.0 1968-69 18.5 21.5 21.5
1967-68 21.1 13.4 13.4 5.7
1968-69 20.7 12.4 12.4 5.3 1969-70 18.2 22.6 22.6
1970-71 17.3 21.4 26.6
1969-70 20.5 13.3 13.3 5.9 1971-72(2) 17.2 22.9 28.3
1970-71 19.5 12.6 17.8 5.7 1972-73 18.6 30.0 32.2
1971-72(2) 19.5 14.0 19.5 6.3 1973-74 18.5 37.0 37.0
1972-73 21.3 19.2 21.3 12.3
1973-74 21.1 21.1 21.1 21.1 1974-75 18.8 37.2 37.2
1975-76 20.0 40.0 40.0
1974-75 22.6 22.3 22.3 22.3 1976-77 20.1 40.1 40.1
1975-76 24.0 24.0 24.0 22.6 1977-78 20.7 41.4 41.4
1976-77 24.1 24.1 24.1 20.0 1978-79 20.7 41.4 41.4
1977-78 24.8 24.8 24.8 18.3
1978-79 24.8 24.3 24.8 17.0 1979-80 20.3 40.5 40.5
1980-81 19.9 39.9 39.9
1979-80 24.3 22.0 24.3 15.4 1981-82 19.0 38.1 38.1
1980-81 23.9 19.9 23.9 13.6 1982-83(2) 19.0 38.1 38.1
1981-82 22.8 18.6 22.8 11.9 1983-84 19.4 38.9 38.9
1982-83(2) 22.8 18.7 22.8 .11.4
1983-84 23.3 19.9 23.3 11.9 1984-85 19.5 39.0 39.0
1985-86 19.5 39.1 39.1
1984-85 23.4 20.7 23.4 12.4
1985-86 23.4 21.6 23.4 12.0
Notes:

on pension paydays.
TABLE C4.3: MAXIMUM PAYMENT RATES AS PROPORTIONS OF AWE TABLE C4.4: MAXIMUM PAYMENT RATES AS PROPORTIONS OF AWE
1964-65 to 1985-86 1964-65 to 1985-86
Additional Payments for Pensioners/Beneficiaries(l) Family Allowances for the First Five Children

YEAR Child Child Pensioners Pensioner Sick Ben % % % % %
1964-65 1.0 1.9 2.9 2.9 2.9
% % % % % 1965-66 0.9 1.8 2.8 2.8 2.8
1964-65 2.9 2.9 7.7 1.9 0.0 1966-67 0.9 1.7 2.6 2.6 2.6
1965-66 2.8 2.8 7.3 3.2 0.0 1967-68 0.8 1.6 2.4 2.7 3.0
1966-67 2.6 2.6 6.9 3.4 0.0 1968-69 0.8 1.5 2.3 2.6 3.0
1967-68 2.4 2.'4 6.5 3.2 0.0
1968-69 3.4 3.4 6.0 3.0 0.0 1969-70 0.7 1.4 2.1 2.4 2.8
1970-71 0.6 1.3 1.9 2.2 2.5
1969-70 3.5 4.5 7.6 2.8 0.0 1971-72 0.6 1.1 2.1 2.4 2.7
1970-71 3.1 4.4 7.5 2.5 1.8 1972-73 0.5 1.0 2.1 2.3 2.6
1971-72(2) 4.5 4.8 6.8 2.3 2.3 1973-74 0.4 0.9 1.8 2.0 2.2
1972-73 4.7 4.7 6.3 3.7 3.7
1973-74 4.4 4.4 5.4 3.6 3.6 1974-75 0.4 0.7 1.4 1.6 1.8
1975-76 0.3 0.6 1.3 1.4 1.6
1974-75 5.4 5.4 4.3 3.3 3.3 1976-77 1.9 2.8 3.3 3.3 3.9
1975-76 4.6 4.6 3.8 3.1 3.1 1977-78 1.8 2.5 3.0 3.0 3.6
1976-77 4.2 4.2 3.3 2.8 2.8 1978-79 1.7 2.4 2.8 2.8 3.3
1977-78 3.8 3.8 3.0 2.5 2.5
1978-79 3.5 3.5 2.8 2.4 2.4 1979-80 1.5 2.1 2.6 2.6 3.0
1980-81 1.3 1.9 2.3 2.3 2.6
1979-80 3.2 3.2 2.6 2.1 2.1 1981-82 1.2 1.6 2.5 2.5 2.9
1980-81 3.4 3.4 2.8 1.9 1.9 1982-83 1.4 2.0 2.7 2.7 3.1
1981-82 3.3 3.3 2.6 2.0 2.0 1983-84 1.4 2.0 2.5 2.5 2.9
1982-83(2) 3.0 3.0 2.4 2.8 2.8
1983-84 3.1 3.1 2.2 2.7 2.7 1984-85 1.3 1.9 2.3 2.3 2.7
1985-86 1.3 1.8 2.2 2.2 2.5
1984-85 3.4 3.4 2.4 3.4 3.4
1985-86 3.7 3.7 2.5 3.6 3.6
Notes:
on pension paydays.
APPENDIX D - AVERAGE WEEKLY EARNINGS
TABLE PAGE
Dl Average Weekly Earnings ,, 61
59.
TABLE D1: AVERAGE WEEKLY EARNINGS - 1964-65 to 1985-86
Real Terms
YEAR Nominal Terms [1985-86 Dollars]
$/yr $/yr
1964-65 2714 13499
1965-66 2834 13594
1966-67 3032 14176
1967-68 3208 14501
1968-69 3453 15235
1969-70 3734 15954
1970-71 4134 16842
1971-72 4566 17408
1972-73 4992 17974
1973-74 5788 18429
1974-75 7270 19835
1975-76 8268 19991
1976-77 9339 19811
1977-78 10234 19840
1978-79 11014 19732
1979-80 12142 19754

1980-81 13780 20491
1981-82 15782 21257
1982-83 17576 21231
1983-84 19058 21518
1984-85 20353 22059
1985-86 21648 21648
SOURCES:
AVERAGE WEEKLY EARNINGS, AUSTRALIA, Australian Bureau
of Statistics, Various Issues.
APPENDIX E - TAXATION COMPONENTS
TABLE PAGE
El Rates of Dependent Deductions/Rebates 64
E2 Average Tax Rates for Various Families 65
E3 Value of Dependent Deductions/Rebates to

Various Families 68
E4 Real Value of Dependent Deductions/Rebates to

Various Families 71
63.
TABLE El: RATES OF DEPENDENT DEDUCTIONS/REBATES
1964-65 to 1985-86
Dependent Spouse Dependent Children

Depend No Dep Sole First Other
Child Child Parent Child Child
$/yr $/yr $/yr $/yr $/yr

YEAR Deductions
1964-65 286 286 0 182 130
1965-66 286 286 0 182 130
1966-67 286 286 0 182 130
1967-68 312 312 0 208 156
1968-69 312 312 0 208 156
1969-70 312 312 0 208 156
1970-71 312 312 0 208 156
1971-72 312 312 0 208 156
1972-73 364 364 0 260 208
1973-74 364 364 0 260 208
1974-75 364 364 0 260 208
Rebates
1975-76 400 400 200 200 150
1976-77 500 500 350 0 0
1977-78 555 555 388 0 0
1978-79 597 597 417 0 0
1979-80 597 597 417 0 0
1980-81 800 800 559 0 0
1981-82 830 830 580 0 0
1982-83 963 830 713 0 0
1983-84 1030 830 780 0 0
1984-85 1030 830 780 0 0
1985-86 1030 830 780 0 0
SOURCE:
REPORT OF THE COMMISSIONER OF TAXATION, Various Years.
TABLE E2.1: AVERAGE TAX RATES TABLE E2.2: AVERAGE TAX RATES
1964-65 TO 1985-86 1964-65 TO 1985-86
Child Endow/Family Allow as Refundable Tax Rebates Child Endow/Family Allow as Refundable Tax Rebates
Single Person In Employment Single Person In Employment
Income = 50% of AWE Income = 100% of AWE
YEAR 0 Child 1 Child 2 Child 3 Child 4 Child 5 Child YEAR 0 Child 1 Child 2 Child 3 Child 4 Child 5 Child
% % % % % % % % % % % %
1964-65 7.4 3.7 -1.3 -8.2 -15.0 -21. 5 1964-65 13.9 11.3 8.2 4.2 0.3 -3.6
1965-66 7.9 4.2 -0.7 -7.3 -13.8 -20.2 1965-66 14.7 12.1 9.1 5.3 1.5 -2.3
1966-67 8.4 4.9 0.2 -6.1 -12.2 -18.3 1966-67 15.5 13.0 10.2 6.5 2.9 -0.7
1967-68 8.9 5.2 0.5 -5.7 -12.2 -19.3 1967-68 16.2 13.6 10.6 7.0 3.0 -1.2
1968-69 9.6 6.0 1.5 -4.3 -10.8 -17.9 1968-69 17.2 14.6 11.9 8.3 4.5 0.3
1969-70 10.3 6.8 2.6 -2.9 -9.0 -15.6 1969-70 18.3 15.8 13.2 9.8 6.2 2.3
1970-71 10.1 7.0 3.2 -1.7 -7.3 -13.3 1970-71 17.8 15.6 13.2 10.2 7.0 3.5
1971-72 11.3 8.2 4.7 -0.8 -6.7 -13.1 1971-72 19.6 17.5 15.2 11.9 8.5 4.8
1972-73 10.3 7.3 3.8 -1.6 -7.5 -13.8 1972-73 18.3 16.1 13.8 10.5 6.8 3.1
1973-74 11.6 8.9 5.7 0.8 -4.5 -10.1 1973-74 20.5 18.4 16.3 13.3 10.1 6.7
1974-75 9.5 6.0 2.3 -2.9 -8.2 -11.8 1974-75 20.6 18.7 16.9 14.4 11.6 8.7
1975-76 10.5 0.2 -1.9 -4.4 -7.2 -10.4 1975-76 21.9 16.8 14.3 11.3 8.0 4.7
1976-77 10.5 -0.9 -6.4 -13.1 -19.8 -27.6 1976-77 21.9 16.2 13.5 10.1 6.8 2.9
1977-78 9.6 -1.5 -6.6 -12.7 -18.8 -25.9 1977-78 21.2 15.6 13.0 10.0 6.9 3.4
1978-79 9.9 -0.9 -5.6 -11.2 -16.9 -23.5 1978-79 21.7 16.3 13.9 11.1 8.3 5.0
1979-80 11.9 2.0 -2.3 -7.4 -12.6 -18.6 1979-80 22.5 17.5 15.4 12.8 10.2 7.2
1980-81 13.2 2.5 -1.3 -5.8 -10.4 -15.7 1980-81 22.6 17.2 15.3 13.1 10.8 8.2
1981-82 15.0 5.3 2.0 -2.9 -7.9 -13.6 1981-82 23.5 18.7 17.0 14.5 12.1 9.2
1982-83 15.1 4.2 0.3 -4.9 -10.0 -15.8 1982-83 22.9 17.4 15.5 12.8 10.1 7.0
1983-84 15.5 4.2 0.3 -3.8 -7.6 -11.6 1983-84 22.8 17.2 15.2 12.7 10.3 7.4
1984-85 14.6 4.0 0.4 -3.5 -6.9 -10.5 1984-85 22.6 17.4 15.5 13.2 10.9 8.2
1985-86 14.4 4.3 0.9 -2.7 -5.9 -9.3 1985-86 23.4 18.5 16.7 14.6 12.4 9.9
1964-65 TO 1985-86 1964-65 TO 1985-86
Single Person In Employment Married Couple With One Income From Employment
% % % % % % % % % % % %
1964-65 23.5 21.8 19.9 17.5 15.2 12.9 1964-65 4.6 1.2 -3.6 -10.2 -16.5 -23.0
1965-66 24.8 23.0 21.2 18.9 16.7 14.4 1965-66 •5.1 1.6 -3.0 -9.4 -15.6 -21.6
1966-67 25.9 24.2 22.4 20.2 18.1 16.0 1966-67 5.6 2.3 -2.1 -8.2 -14.1 -19.9
1967-68 26.8 25.0 23.2 21.0 18.6 16.1 1967-68 5.9 2.4 -1.9 -7.9 -14.1 -20.6
1968-69 28.1 26.4 24.6 22.4 20.2 17.7 1968-69 6.5 3.2 -1.0 -6.6 -12.8 -19.5
1969-70 29.5 27.8 26.1 24.2 22.0 19.7 1969-70 7.2 4.1 0.1 -5.2 -11.0 -17.4
1970-71 28.1 26.7 25.2 23.5 21.6 19.5 1970-71 7.4 4.6 0.9 -3.8 -9.2 -15.0
1971-72 30.3 28.9 27.6 25.7 23.7 21.6 1971-72 8.5 5.7 2.3 -2.9 -8.7 -14.9
1972-73 28.9 27.5 26.0 24.1 22.0 19.7 1972-73 7.7 4.9 1.6 -3.6 -9.3 -17.2
1973-74 31.5 30.2 28.9 27.1 25.2 23.3 1973-74 9.1 6.5 3.5 -1.2 -6.3 -11.8
1974-75 35.9 34.7 33.6 32.1 30.5 28.8 1974-75 5.5 2.0 -1.8 -5.0 -8.2 -11.8
1975-76 33.4 30.8 29.6 28.0 26.4 24.7 1975-76 0.9 -0.6 -1.9 -4.4 -7.2 -10.4
1976-77 33.3 30.5 29.1 27.4 25.8 23.8 1976-77 0.0 -3.9 -9.5 -16.1 -22.8 -30.6
1977-78 30.8 28.0 26.7 25.2 23.7 21.9 1977-78 0.0 -3.6 -8.6 -14.7 -20.8 -28.0
1978-79 31.1 28.4 27.2 25.8 24.4 22.8 1978-79 0.0 -3.3 -8.0 -13.6 -19.3 -25.9
1979-80 32.2 29.7 28.7 27.4 26.1 24.6 1979-80 2.0 -1.0 -5.3 -10.4 -15.5 -21.5
1980-81 32.5 29.9 28.9 27.8 26.6 25.3 1980-81 1.6 -1.0 -4.8 -9.3 -13.9 -19.2
1981-82 33.8 31.4 30.6 29.3 28.1 26.7 1981-82 4.5 2.2 -1.1 -6.1 -11.0 -16.8
1982-83 33.8 31.1 30.1 28.8 27.4 25.9 1982-83 5.6 1.3 -2.5 -7.7 -12.7 -18.5
1983-84 35.1 32.3 31.3 30.0 28.8 27.4 1983-84 6.8 1.7 -2.0 -6.0 -9.7 -13.6
1984-85 36.4 33.8 32.9 31.7 30.6 29.2 1984-85 6.5 1.7 -1.8 -5.5 -8.8 -12.4
1985-86 37.7 35.3 34.4 33.3 32.2 30.9 1985-86 6.7 2.2 -1.1 -4.6 -7.7 -10.9
1964-65 TO 1985-86 1964-65 TO 1985-86
Married Couple With One Income From Employment Married Couple With One Income From Employment
YEAR 0 Child 1 Child 2 Child 3 Child 4 Child 5 Child 2 Child 3 Child

YEAR. 0 Child 1 Child 4 Child 5 Child
% % % % % % % % % % % %
1964-65 11.3 8.8 5.9 2.0 -1.8 -5.6
1965-66 1964-65 21.5 19.7 17.9 15.5 13.3 11.0
12.1 9.6 6.8 3.0 -0.7 -4.4 1965-66 22.8 21.0 19.2 16.9 14.7 12.5
1966-67 13.0 10.6 7.8 4.3 0.7 -2.8
1967-68 1966-67 23.9 22.2 20.5 18.4 16.3 14.1
13.5 11.0 8.1 4.5 0.7 -3.3 1967-68 24.8 23.0 21.1 18.9 16.6 14.1
1968-69 14.5 12.1 9.4 5.9 2.2 -1.9 22.6 20.5 18.3 15.8
1968-69 26.1 24.3
1969-70 15.7 13.3 10.7 7.5 3.9 0.1 22.3 17.8
1970-71 15.5 1969-70 27.5 25.9 24.3 20.1
13.4 11.1 8.2 5.0 1.5 1970-71 26.5 25.1 23.6 21.9 20.0 17.9
1971-72 17.3 15.2 13.0 9.8 6.4 2.8 24.1
1972-73 16.0 1971-72 28.7 27.3 26.0 22.2 20.0
13.9 11.6 8.3 4.8 1.1 1972-73 27.3 25.8 24.4 22.5 20.4 18.2
1973-74 18.3 16.3 14.2 11.3 8.2 4.8 25.6 23.7 21.7
1973-74 30.0 28.7 27.4
1974-75 18.5 16.8 15.0 12.4 9.6 6.7 1974-75 34.5 33.3 32.2 30.7 29.1 27.4
1975-76 17.1 14.4 11.9 8.9 5.6 2.2 1975-76 26.8 25.2 23.5
1976-77 30.9 29.6 28.3
16.6 14.6 11.8 8.5 5.2 1.3 1976-77 30.7 29.7 28.3 26.6 25.0 23.0
1977-78 15.7 13.9 11.4 8.4 5.3 1.7 1977-78 28.1 27.2 25.9 24.4 22.9 21.1
1978-79 16.3 14.7 12.3 9.5 6.7 3.4 1978-79 28.4 27.6 26.4 25.0 23.6 21.9
1979-80 17.5 16.0 13.9 11.3 8.8 5.8 1979-80 29.7 29.0 27.9 26.6 25.3 23.8
1980-81 16.8 15.5 13.6 11.3 9.1 6.4 1980-81 29.6 29.0 28.0 26.9 25.8 24.5
1981-82 18.2 17.1 15.4 13.0 10.5 7.6 29.8 28.5 25.9
1982-83 1981-82 31.2 30.6 27.3
18.2 16.0 14.0 11.4 8.7 5.6 1982-83 31.5 30.4 29.4 28.1 26.7 25.2
1983-84 18.4 15.9 13.9 11.4 9.0 6.1 30.6 29.4 28.2
1983-84 32.9 31.6 26.7
1984-85 .. 18.5 16.2 14.3 12.0 9.7 7.0 31.1 29.9 28.6
1985-86 1984-85 34.4 33.2 32.2
19.6 17.4 15.6 13.4 11.2 8.7 1985-86 35.8 34.7 33.8 32.7 31.6 30.4
TABLE E3.1: VALUE(l) OF TAX DEDUCTIONS/REBATES TABLE E3.2: VALUE(l) OF TAX DEDUCTIONS/REBATES
1964-65 TO 1985-86 1964-65 TO 1985-86
$/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr
1964-65 0 51 119 212 304 393 1964-65 0 70 154 261 367 473
1965-66 0 52 122 216 308 398 1965-66 0 73 158 268 375 482
1966-67 0 54 125 220 313 406 1966-67 0 76 162 273 384 493
1967-68 0 60 135 234 339 452 1967-68 0 83 179 297 424 558
1968-69 0 62 139 240 351 473 1968-69 0 89 185 307 440 584
1969-70 0 65 144 246 360 484 1969-70 0 93 192 317 452 599
1970-71 0 64 142 245 359 483 1970-71 0 91 190 314 448 594
1971-72 0 69 150 274 409 554 1971-72 0 95 199 347 504 673
1972-73 0 73 161 297 444 601 1972-73 0 111 226 393 573 762
1973-74 0 79 172 312 .465 627 1973-74 0 118 239 412 598 794
1974-75 0 130 265 452 646 776 1974-75 0 141 272 455 653 866.
1975-76 0 426 514 618 735 865 1975-76 0 426 628 882 1149 1429
1976-77 0 532 792 1104 1416 1780 1976-77 0 532 792 1104 1416 1780
1977-78 0 570 830 1142 1454 1818 1977-78 0 570 830 1142 1454 1818
1978-79 0 599 859 1171 1483 1847 1978-79 0 599 859 1171 1483 1847
1979-80 0 599 860 1172 1484 1848 1979-80 0 599 860 1172 1484 1848
1980-81 0 741 1002 1314 1626 1990 1980-81 0 741 1002 1314 1626 1990
1981-82 0 762 1023 1413 1803 2258 1981-82 0 762 1023 1413 1803 2258
1982-83 0 956 1303 1771 2239 2786 1982-83 0 956 1303 1771 2239 2786
1983-84 0 1054 1444 1912 2380 2927 1983-84 0 1054 1444 1912 2380 2927
1984-85 0 1054 1444 1912 2380 2927 1984-85 0 1054 1444 1912 . 2380 2927
1985-86 0 1054 1444 1912 2380 2927 1985-86 0 1054 1444 1912 2380 2927
Notes: Notes:
1 - The value is the amount a family's tax deductions/rebates 1 - The value is the amount a family's tax deductions/rebates
reduce their tax liability by. reduce their tax liability by.
TABLE E3.3: VALUE(1) OF TAX DEDUCTIONS/REBATES TABLE E3.4: VALUE(l) OF TAX DEDUCTIONS/REBATES
1964-65 TO 1985-86 1964-65 TO 1985-86
1964-65 0 96 198 326 454 579 1964-65 38 85 150 239 325 413
1965-66 0 99 202 331 460 589 1965-66 40 89 155 245 333 418
1966-67 0 103 210 343 472 601 1966-67 43 93 160 252 341 429
1967-68 0 114 232 376 529 690 1967-68 49 104 174 269 369 474
1968-69 0 119 241 389 546 716 1968-69 53 110 182 278 385 501
1969-70 0 125 248 396 558 732 1969-70 57 116 191 289 398 517
1970-71 - 0 120 239 384 542 712 1970-71 56 115 190 288 398 518
1971-72 0 127 253 421 601 795 1971-72 63 126 204 323 453 595
1972-73 0 141 285 481 689 911 1972-73 65 133 216 347 488 ' 685
1973-74 0 151 303 507 725 955 1973-74 74 147 235 372 519 676
1974-75 0 169 335 554 785 1030 1974-75 146 276 411 529 646 776
1975-76 0 426 628 882 1149 1429 1975-76 400 462 514 618 735 865
1976-77 0 532 792 1104 1416 1780 1976-77 492 674 934 1246 1558 1922
1977-78 0 570 830 1142 1454 1818 1977-78 491 673 933 1245 1557 1921
1978-79 0 599 859 1171 1483 1847 1978-79 549 731 991 1303 1615 1979
1979-80 0 599 860 1172 1484 1848 1979-80 597 779 1040 1352 1664 2028
1980-81 0 741 1002 1314 1626 1990 1980-81 800 982 1243 1555 1867 2231
1981-82 0 762 1023 1413 1803 2258 1981-82 830 1012 1273 1663 2053 2508
1982-83 0 956 1303 1771 2239 2786 1982-83 830 1206 1553 2021 2489 3036
1983-84 0 1054 1444 1912 2380 2927 1983-84 830 1304 1694 2162 2630 3177
1984-85 0 1054 1444 1912 2380 2927 1984-85 830 1304 1694 2162 2630 3177
1985-86 0 1054 1444 1912 2380 2927 1985-86 830 1304 1694 2162 2630 3177
Notes: Notes:
TABLE E3.5: VALUE(l) OF TAX DEDUCTIONS/REBATES TABLE E3.6: VALUE(l) OF TAX DEDUCTIONS/REBATES
1964-65 TO 1985-86 1964-65 TO 1985-86
1964-65 70 136 216 322 425 527 1964-65 110 206 308 433 557 681
1965-66 73 144 225 331 438 541 1965-66 114 212 315 444 573 698
1966-67 78 150 235 342 449 556 1966-67 121 223 327 456 585 714
1967-68 86 167 259 375 497 627 1967-68 132 246 364 507 656 813
1968-69 93 177 271 389 519 659 1968-69 -140 259 377 521 678 847
1969-70 98 187 283 404 537 681 1969-70 147 266 389 .537 698 870
1970-71 96 184 279 399 532 675 1970-71 139 254 373 517 675 844
1971-72 103 199 299 442 597 762 1971-72 152 273 396 564 744 937
1972-73 116 221 336 501 674 858 1972-73 161 302 445 641 848 1065
1973-74 126 239 360 532 712 905 1973-74 175 326 479 683 900 1130
1974-75 155 280 411 598 798 1012 1974-75 200 369 536 754 985 1230
1975-76 400 626 828 1082 1349 1629 1975-76 400 626 828 1082 1349 1629
1976-77 500 682 942 1254 1566 1930 1976-77 500 682 942 1254 1566 1930
1977-78 555 737 997 1309 1621 1985 1977-78 555 737 997 1309 1621 1985
1978-79 597 779 1039 1351 1663 2027 1978-79 597 779 1039 1351 1663 2027
1979-80 597 779 1040 1352 1664 2028 1979-80 597 779 1040 1352 1664 2028
1980-81 800 982 1243 1555 1867 2231 1980-81 800 982 1243 1555 1867 2231
1981-82 830 1012 1273 1663 2053 2508 1981-82 830 1012 1273 1663 2053 2508
1982-83 830 1206 1553 2021 2489 3036 1982-83 830 1206 1553 2021 2489 3036
1983-84 830 1304 1694 2162 2630 3177 1983-84 830 1304 1694 2162 2630 3177
1984-85 830 1304 1694 2162 2630 3177 1984-85 830 1304 1694 2162 2630 3177
1985-86 830 1304 1694 2162 2630 3177 1985-86 830 1304 1694 2162 2630 3177
Notes: Notes:
TABLE E4.1: REAL VALUE(l) OF TAX DEDUCTIONS/REBATES TABLE E4.2: REAL VALUE(l) OF TAX DEDUCTIONS/REBATES
1964-65 TO 1985-86 - 1985-86 Dollar Terms 1964-65 TO 1985-86 - 1985-86 Dollar Terms
1964-65 0 254 592 1054 1512 1954 1964-65 0 348 766 1298 1825 2352
1965-66 0 249 585 1036 1477 1909 1965-66 0 350 758 1286 1799 2312
1966-67 0 253 585 1029 1464 1898 1966-67 0 355 758 1277 1796 2305
1967-68 0 271 610 1058 1532 2043 1967-68 0 375 809 1342 1916 2522
1968-69 0 274 613 1059 1549 2087 1968-69 0 393 816 1355 1941 2577
1969-70 0 278 615 1051 1538 2068 1969-70 0 397 820 1355 1931 2560
1970-71 0 261 579 998 1463 1968 1970-71 0 371 774 1279 1825 2420
1971-72 0 263 572 1045 1559 2112 1971-72 0 362 759 1323 1922 2566
1972-73 0 263 580 1069 1599 2164 1972-73 0 400 814 1415 2063 2744
1973-74 0 252 548 993 1481 1996 1973-74 0 376 761 1312 1904 2528
1974-75 0 355 723 1233 1763 2117 1974-75 0 385 742 1241 1782 2363
1975-76 0 1030 1243 1494 1777 2091 1975-76 0 1030 1518 a 33 2778 3455
1976-77 0 1129 1680 2342 3004 3776 1976-77 0 1129 1680 2342 3004 3776
1977-78 0 1105 1609 2214 2819 3525 1977-78 0 1105 1609 2214 2819 3525
1978-79 0 1073 1539 2098 2657 3309 1978-79 0 1073 1539 2098 2657 3309
1979-80 0 975 1399 1906 2414 3007 1979-80 0 975 1399 1906 2414 3007
1980-81 0 1102 1490 1954 2418 2959 1980-81 0 1102 1490 1954 2418 2959
1981-82 0 1027 1378 1903 2428 3042 1981-82 0 1027 1378 1903 2428 3042
1982-83 0 1155 1574 2140 2705 3365 1982-83 0 1155 1574 2140 2705 3365
1983-84 0 1191 1632 2161 2689 3307 1983-84 0 1191 1632 2161 2689 3307
1984-85 0 1142 1565 2072 2580 3172 1984-85 0 1142 1565 2072 2580 3172
1985-86 0 1054 1444 1912 2380 2927 1985-86 0 1054 1444 1912 2380 2927
Notes: Notes:
1964-65 0 477 985 1621 2258 2880 1964-65 189 423 746 1189 1616 2054
1965-66 0 475 969 1588 2207 2825 1965-66 192 427 744 1175 1597 2005
1966-67 0 482 982 1604 2207 2810 1966-67 201 435 748 1178 1595 2006
1967-68 0 515 1049 1699 2391 3119 1967-68 221 470 786 1216 1668 2142
1968-69 0 525 1063 1716 2409 3159 1968-69 234 485 803 1227 1699 2211
1969-70 0 534 1060 1692 2384 3128 1969-70 244 496 816 1235 1701 2209
1970-71 0 489 974 1564 2208 2901 1970-71 228 469 774 1173 1621 2110
1971-72 0 484 965 1605 2292 3031 1971-72 240 480 778 1232 1727 2269
1972-73 0 508 1026 1732 2481 3280 1972-73 234 479 778 1249 1757 2466
1973-74 0 481 965 1614 2309 3041 1973-74 236 468 748 1185 1653 2152
1974-75 0 461 914 1512 2142 2810 1974-75 398 753 1121 1443 1763 2117
1975-76 0 1030 1518 2133 2778 3455 1975-76 967 1117 1243 1494 1777 2091
1976-77 0 1129 1680 2342 3004 3776 1976-77 1044 1430 1981 2643 3305 4077
1977-78 0 1105 1609 2214 2819 3525 1977-78 952 1305 1809 2414 3019 3724
1978-79 0 1073 1539 2098 2657 3309 1978-79 984 1310 1775 2334 2893 3546
1979-80 0 975 1399 1906 2414 3007 1979-80 971 1268 1692 2199 2707 3299
1980-81 0 1102 1490 1954 2418 2959 1980-81 1190 1461 1848 2312 2776 3317
1981-82 0 1027 1378 1903 2428 3042 1981-82 1118 1364 1714 2240 2765 3378
1982-83 0 1155 1574 2140 2705 3365 1982-83 1003 1457 1876 2442 3007 3667
1983-84 0 1191 1632 2161 2689 3307 1983-84 938 1473 1914 2443 2972 3590
1984-85 0 1142 1565 2072 2580 3172 1984-85 900 1413 1836 2343 2851 3443
1985-86 0 1054 1444 1912 2380 2927 1985-86 830 1304 1694 2162 2630 3177
Notes: Notes:
1964-65 348 676 1074 1601 2114 2621 1964-65 547 1024 1532 2153 2770 3387
1965-66 350 691 • 1079 1588 2101 2595 1965-66 547 1017 1511 2130 2749 3348
1966-67 365 701 1099 1599 2100 2600 1966-67 566 1043 1529 2132 2736 3339
1967-68 389 755 1171 1695 2246 2834 1967-68 597 1112 1645 2292 2965 3675
1968-69 410 781 1196 1716 2290 2908 1968-69 618 1143 1663 2299 2992 3737
1969-70 419 799 1209 1726 2295 2910 1969-70 628 1137 1662 2295 2983 3718
1970-71 391 750 1137 1626 2167 2750 1970-71 566 1035 1520 2106 2750 3438
1971-72 393 759 1140 1685 2276 2905 1971-72 580 1041 1510 2150 2837 3573
1972-73 418 796 1210 1804 2427 3089 1972-73 580 1087 1602 2308 3053 3835
1973-74 401 761 1146 1694 2267 2882 1973-74 557 1038 1525 2175 2866 3598
1974-75 423 764 1121 1632 2177 2761 1974-75 546 1007 1462 2057 2688 3356
1975-76 967 1514 2002 2616 3262 3939 1975-76 967 1514 2002 2616 3262 3939
1976-77 1061 1447 1998 2660 3322 4094 1976-77 1061 1447 1998 2660 3322 4094
1977-78 1076 1429 1933 2538 3143 3848 1977-78 1076 1429 1933 2538 3143 3848
1978-79 1070 1396 1861 2420 2979 3632 1978-79 1070 1396 1861 2420 2979 3632
1979-80 971 1268 1692 2199 2707 3299 1979-80 971 1268 1692 2199 2707 3299
1980-81 1190 1461 1848 2312 2776 3317 1980-81 1190 1461 1848 2312 2776 3317
1981-82 1118 1364 1714 2240 2765 3378 1981-82 1118 1364 1714 2240 2765 3378
1982-83 1003 1457 1876 2442 3007 3667 1982-83 1003 1457 1876 2442 3007 3667
1983-84 938 1473 1914 2443 2972 3590 1983-84 938 1473 1914 2443 2972 3590
1984-85 900 1413 1836 2343 2851 3443 1984-85 900 1413 1836 2343 2851 3443
1985-86 830 1304 1694 2162 2630 3177 1985-86 830 1304 1694 2162 2630 3177
Notes: Notes:
APPENDIX F - DISPOSABLE INCOMES
TABLE PAGE
Fl Disposable Incomes of Various Families 76

F2 Real Disposable Incomes of Various Families 83
F3 Indices of Real Disposable Incomes for
Various Families 90
F4 Disposable Incomes Relative to those of a
Single Person Earning AWE 97
75.
TABLE Fl.l: DISPOSABLE INCOMES TABLE F1.2: DISPOSABLE INCOMES
1964-65 TO 1985-86 1964-65 TO 1985-86
Single Age, Invalid and Sole Parent Pensioners Single Adult Sickness Beneficiaries(l)
No Private Income No Private Income
1964-65 618 930 1060 1216 1372 1528 1964-65 429 533 663 819 975 1131
1965-66 624 936 1066 1222 1378 1534 1965-66 429 533 663 819 975 1131
1966-67 662 974 1104 1260 1416 1572 1966-67 429 533 663 819 975 1131
1967-68 676 988 1118 1274 1439 1613 1967-68 429 533 663 819 984 1158
1968-69 714 1064 1232 1426 1633 1853 1968-69 429 571 739 933 1140 1360
1969-70 766 1206 1426 1672 1931 2203 1969-70 495 637 844 1076 1321 1579
1970-71 805 1273 1507 1767 2040 2326 1970-71 735 891 1125 1385 1658 1944
1971-72(1) 890 1435 1707 2024 2353 2696 1971-72(2) 890 1123 1395 1712 2041 2384
1972-73 1064 1636 1922 2260 2611 2975 1972-73 1064 1324 1610 1948 2299 2663
1973-74 1220 1500 1806 2164 2535
76.
1973-74 1220 1812 2118 2476 2847 3231 2919
1974-75 1642 2272 2616 3012 3421 3843 1974-75 1622 1940 2284 2680 3089 3511
1975-76 1986 2705 3138 3623 4121 4632 1975-76 1986 2393 2826 3311 3809 4320
1976-77 2250 3134 3784 4486 5188 5942 1976-77 2250 2822 3472 4174 4876 5614
1977-78 2541 3425 4075 4777 5479 6233 1977-78 2541 3113 3763 4465 5167 5921
1978-79 2735 3619 4269 4971 5673 6427 1978-79 2735 3307 3957 4659 5361 6115
1979-80 2951 3836 4486 5188 5890 6644 1979-80 2951 3524 4174 4876 5578 6332
1980-81 3299 4336 5071 5858 6646 7485 1980-81 3299 3956 4691 5478 6266 7105
1981-82 3605 4723 5504 6414 7324 8299 1981-82 3605 4307 5088 5998 6908 7820
1982-83(1) 4012 5192 6059 7047 8035 9101 1982-83(2) 4012 4776 5643 6631 7619 8685
1983-84 4445 5727 6709 7769 8829 . 9968 1983-84 4445 5391 6373 7433 8493 9632
1984-85 4763 6220 7307 8471 9635 10878 1984-85 4763 6220 7307 8471 9635 10878
1985-86 5068 6678 7864 9128 10392 11735 1985-86 5068 6678 7864 9128 10392 11735
Notes: Notes:
1 - Pension rates have been averaged to exclude the effect 1 - Benefit paydays are assumed to fall on pension paydays.
2 - Benefit rates have been averaged to exclude the effect
TABLE F1.3: DISPOSABLE INCOMES TABLE F1.4: DISPOSABLE INCOMES
1964-65 TO 1985-86 1964-65 TO 1985-86
Single Unemployment Beneficiaries(l) Aged and Invalid Pensioner Couples
YEAR Adult 18-20 Yrs 16-17 Yrs YEAR 0 Child 1 Child 2 Child 3 Child 4 Child 5 Child
$/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr

1964-65 429 247 182 1964-65 1132 1236 1366 1522 1678 1834
1965-66 429 247 182 1965-66 1144 1248 1378 1534 1690 1846
1966-67 429 247 182 1966-67 1130 1234 1364 1520 1676 1832
1967-68 429 247 182 1967-68 1222 1326 1456 1612 1777 1951
1968-69 429 247 182 1968-69 1279 1421 1589 1783 1990 2210
1969-70 495 295 220 1969-70 1357 1513 1733 1979 2238 2510
1970-71 520 312 234 1970-71 1428 1584 1818 2078 2351 2637
1971-72(2) 641 399 286 1971-72(1) 1573 1807 2079 2396 2725 3068
1972-73 956 740 614 1972-73 1854 2114 2400 2738 3089 3453
1973-74 1220 1220 1220 1973-74 2140 2420 2726 3084 3455 3839
1974-75 1622 1622 1622 1974-75 2739 3057 3401 3797 4206 4628
77.
1975-76 1986 1986 1872 1975-76 3305 3712 4145 4630 5128 5639
1976-77 2250 2250 1872 1976-77 3746 4318 4968 5670 6372 7126
1977-78 2541 2541 1872 1977-78 4237 4809 5459 6161 6863 7617
1978-79 2675 2675 1872 1978-79 4560 5132 5782 6484 7186 7940
1979-80 2675 2675 1872 1979-80 4919 5492 6142 6844 7546 8300
1980-81 2743 2743 1872 1980-81 5496 6154 6889 7676 8463 9302
1981-82 2938 2938 1872 1981-82 6010 6712 7493 8403 9313 10288
1982-83(2) 3281 3281 2011 1982-83(1) 6689 7453 8320 9308 10296 11362
1983-84 3798 3798 2260 1983-84 7411 8277 9259 10319 11379 12518
1984-85 4218 4218 2520(3) 1984-85 7944 8914 10001 11165 12329 13571
1985-86 4682 4532 2600(3) 1985-86 8454 9523 10710 11974 13238 14580
Notes: Notes:
1 - Benefit paydays are assumed to fall on pension paydays. 1 - Pension rates have been averaged to exclude the effect
2 - Benefit rates have been averaged to exclude
3 - Based on the higher rate of benefit payable
to persons in receipt of benefit for 6 months or more.
1964-65 TO 1985-86 1964-65 TO 1985-86
Unemployment Beneficiary Couples(l) Single Person In Employment
No Private Income Income = 50% of AWE
1964-65 741 845 975 1131 1287 1443 1964-65 1256 1307 1375 1468 1560 1649
1965-66 741 845 975 1131 1287 1443 1965-66 1305 1357 1427 1521 1613 1703
1966-67 741 845 975 1131 1287 1443 1966-67 1387 1441 1512 1607 1700 1793
1967-68 741 845 975 1131 1296 1470 1967-68 1460 1520 1595 1694 1799 1912
1968-69 741 883 1051 1245 1452 1672 1968-69 1560 1622 1699 1800 1911 2033
1969-70 846 988 1194 1426 1671 1929 1969-70 1675 1740 1819 1921 2035 2159
1970-71 884 1040 1274 1534 1807 2093 1970-71 1856 1920 1998 2101 2215 2339
1971-72(2) 1044 1277 1549 1866 2195 2538 1971-72 2019 2088 2169 2293 2428 2573
1972-73 1500 1760 2046 2384 2735 3099 1972-73 2240 2313 2401 2537 2684 2841
1973-74 2140 2420 2726 3084 3455 3839 1973-74 2557 2636 2729 2869 3022 3184
78.
1974-75 2705 3023 3367 3763 4172 4594 1974-75 3288 3418 3553 3740 3934 4064
1975-76 3305 3712 4145 4630 5128 5639 1975-76 3698 4124 4212 4316 4433 4563
1976-77 3746 4318 4968 5611 6208 6853 1976-77 4177 4709 4969 5281 5593 5957
1977-78 4237 4809 5459 6140 6728 7369 1977-78 4624 5194 5454 5766 6078 6442
1978-79 4560 5132 5782 6466 7037 7660 1978-79 4982 5581 5841 6153 6465 6829
1979-80 4919 5492 6142 6715 7288 7913 1979-80 5351 5950 6211 6523 6835 7199
1980-81 5496 6154 6889 7554 8189 8877 1980-81 5978 6719 6979 7291 7603 7968
1981-82 6010 6712 7409 8153 8896 9705 1981-82 6708 7471 7731 8121 8511 8966
1982-83(2) 6689 7453 8281 9109 9938 10845 1982-83 7460 8506 8943 9501 10059 10696
1983-84 . 7396 8277 9219 10166 11113 12139 1983-84 8049 9690 10669 11725 12781 13916
1984-85 7944 8914 10001 11165 12329 13571 1984-85 8688 10435 11520 12682 13844 15084
1985-86 8454 9523 10710 11974 13238 14580 1985-86 9267 11114 12299 13561 14823 16164
Notes:
1964-65 TO 1985-86 1964-65 TO 1985-86
1964-65 2338 2408 2492 2599 2705 2811 1964-65 4151 4247 4349 4477 4605 4730
1965-66 2418 2491 2576 2686 2793 2900 1965-66 4265 4364 4467 4596 4725 4854
1966-67 2559 2635 2721 2832 2943 3052 1966-67 4490 4593 4700 4833 4962 5091
1967-68 2687 2770 2866 2984 3111 3245 1967-68 4694 4808 4926 5070 5223 5384
1968-69 2856 2945 3041 3163 3296 3440 1968-69 4962 5081 5203 5351 5508 5678
1969-70 3050 3143 3242 3367 3502 3649 1969-70 5268 5393 5516 5664 5826 6000
1970-71 3394 3485 3584 3708 3842 3988 1970-71 5937 6057 6176 6321 6479 6650
1971-72 3661 3756 3860 4008 4165 4334 1971-72 6341 6468 6594 6762 6942 7136
1972-73 4078 4189 4304 4471 4651 4840 1972-73 7103 7244 7388 7584 7792 8014
1973-74 4602 4720 4841 5014 5200 5396 1973-74 7926 8077 8229 8433 8651 8881
79.
1974-75 5771 5912 6043 6226 6424 6637 1974-75 9323 9492 9658 9877 10108 10353
1975-76 6454 6880 7082 7336 7603 7883 1975-76 11021 11447 11649 11903 12170 12450
1976-77 7290 7822 8082 8394 8706 9070 1976-77 12449 12981 13241 13553 13865 14229
1977-78 8067 8637 8897 9209 9521 9885 1977-78 14164 14734 14994 15306 15618 15982
1978-79 8661 9260 9520 9832 10144 10508 1978-79 15245 15844 16104 16416 16728 17092
1979-80 9415 10014 10275 10587 10899 11263 1979-80 16467 17067 17327 17639 17951 18315
1980-81 10663 11404 11665 11977 12289 12653 1980-81 18588 19329 19590 19902 20214 20578
1981-82 12074 12837 13097 13487 13877 14332 1981-82 20892 21655 21915 22305 22695 23150
1982-83 13552 14508 14855 15323 15791 16338 1982-83 23262 24218 24565 25033 25501 26048
1983-84 14720 15773 16164 16632 17100 17647 1983-84 24756 25810 26200 26668 27136 27683
1984-85 15752 16806 17197 17665 18133 18679 1984-85 25888 26941 27332 27800 28268 28815
1985-86 16584 17637 18028 18496 18964 19510 1985-86 26972 28026 28416 28884 29352 29899
1964-65 TO 1985-86 1964-65 TO 1985-86
$/yr $/yr $/yr $/yr $/yr. $/yr $/yr $/yr $/yr $/yr $/yr $/yr
1964-65 1294 1341 1406 1495 1581 1669 1964-65 2408 2474 2554 2660 2763 2865
1965-66 1345 1394 1460 1550 1638 1723 1965-66 2491 2562 2643 2749 2856 2959
1966-67 1430 1480 1547 1639 1728 1816 1966-67 2637 2709 2794 2901 3008 3115
1967-68 1509 1564 1634 1729 1829 1934 1967-68 2773 2854 2946 3062 3184 3314
1968-69 1613 1670 1742 1838 1945 2061 1968-69 2949 3033 3127 3245 3375 3515
1969-70 1732 1791 1866 1964 2073 2192 1969-70 3148 3237 3333 3454 3587 3731
1970-71 1912 1971 2046 2144 2254 2374 1970-71 3490 3578 3673 3793 3926 4069
1971-72 2082 2145 2223 2342 2472 2614 1971-72 3764 3860 3960 4103 4258
80.
4423
1972-73 2305 2373 2456 2587 2728 2925 1972-73 4194 4299 4414 4579 4752 4936
1973-74 2631 2704 2792 2929 3076 3233 1973-74 4728 4841 4962 5134 5314 5507
1974-75 3434 3564 3699 3817 3934 4064 1974-75 5926 6051 6182 6369 6569 6783
1975-76 4098 4160 4212 4316 4433 4563 1975-76 6854 7080 7282 7536 7803 8083
1976-77 4669 4851 5111 5423 5735 6099 1976-77 7790 7972 8232 8544 8856 9220
1977-78 5115 5297 5557 5869 6181 6545 1977-78 8622 8804 9064 9376 9688 10052
1978-79 5531 5713 5973 6285 6597 6961 1978-79 9258 9440 9700 10012 10324 10688
1979-80 5948 6130 6391 6703 7015 7379 1979-80 10012 10194 10455 10767 11079 11443
1980-81 6778 6960 7220 7532 7844 8209 1980-81 11463 11645 11906 12218 12530 12894
1981-82 7538 7721 7981 8371 8761 9216 1981-82 12904 13087 13347 13737 14127 14582
1982-83 8290 8756 9193 9751 10309 10946 1982-83 14382 14758 15105 15573 16041 16588
1983-84 8879 9940 10919 11975 13031 14166 1983-84 15550 16023 16414 16882 17350 17897
1984-85 9518 10685 11770 12932 14094 15334 1984-85 16582 17056 17447 17915 18383 18929
1985-86 10097 11364 12549 13811 15073 16414 1985-86 17414 17887 18278 18746 19214 19760
TABLE Fl.ll: DISPOSABLE INCOMES TABLE F1.12: DISPOSABLE INCOMES
1964-65 TO 1985-86 1964-65 TO 1985-86
Married Couple With One Income From Employment Married Couple With Two Incomes From Employment
Income = 200% of AWE Combined Income = 50% of AWE - Income Split 60:40
1964-65 4261 4357 4459 4584 4708 4832 1964-65 1311 1352 1413" 1501 1579 1657
1965-66 4379 4477 4580 4709 4838 4963 1965-66 1365 1408 1469 1559 1637 1715
1966-67 4611 4713 4817 4946 5075 5204 1966-67 1454 1498 1561 1646 1733 1811
1967-68 4826 4940 5058 5201 5350 5507 1967-68 1533 1581 1646 1733 1827 1923
1968-69 5102 5221 5339 5483 5640 5809 1968-69 1642 1692 1758 1847 1949 2053
1969-70 ' 5415 5534 5657 5805 5966 6138 1969-70 1769 1820 1888 1979 2079 2190
1970-71 6076 6191 6310 6455 6612 6781 1970-71 1955 2006 2074 2165 2267 2384
1971-72 6493 6614 6737 6905 7085 7278 1971-72 2138 2191 2261 2373 2495 2628
1972-73 2400 2456 2574 2678 2795 2925
81.
1972-73 7264 7405 7548 7744 7951 8168

1973-74 8101 8252 8405 8609 8826 9056 1973-74 2723 2782 2856 3018 3135 3265
1974-75 9523 9692 9859 10077 10308 10553 1974-75 3501 3619 3671 3775 3892 4022
1975-76 11421 11647 11849 12103 12370 12650 1975-76 4134 4160 4212 4316 4433 4563
1976-77 12949 13131 13391 13703 14015 14379 1976-77 4669 4851 5111 5423 5735 6099
1977-78 14719 14901 15161 15473 15785 16149 1977-78 5115 5297 5557 5869 6181 6545
1978-79 15842 16024 16284 16596 16908 17272 1978-79 5531 5713 5973 6285 6597 6961
1979-80 17064 17247 17507 17819 18131 18495 1979-80 6071 6253 6514 6826 7138 7502
1980-81 19388 19570 19831 20143 20455 20819 1980-81 6889 7071 7332 7644 7956 8320
1981-82 21722 21905 22165 22555 22945 23400 1981-82 7830 8012 8273 8663 9053 9508
1982-83 24092 24468 24815 25283 25751 26298 1982-83 8560 9026 9463 10021 10579 11216
1983-84 25586 26060 26450 26918 27386 27933 1983-84 9192 10202 11180 12236 13292 14427
1984-85 26718 27191 27582 28050 28518 29065 1984-85 9773 10824 11908 13070 14232 15473
1985-86 27802 28276 28666 29134 29602 30149 1985-86 10349 11435 12619 13881 15143 16484
TABLE Fl.13: DISPOSABLE INCOMES TABLE F1.14: DISPOSABLE INCOMES
1964-65 TO 1985-86 1964-65 TO 1985-86
Married Couple With Two Incomes From Employment Married Couple With Two Incomes From Employment
Combined Income = 100% of AWE - Income Split 60:40 Combined Income = 200% of AWE - Income Split 60:40
1964-65 2505 2560 2631 2728 2822 2915 1964-65 4656 4732 4820 4933 5043 5153
1965-66 2603 2660 2733 2830 2926 3020 1965-66 4813 4894 4983 5097 5211 5323
1966-67 2766 2825 2899 2998 3095 3190 1966-67 5096 5178 5270 5387 5501 5615
1967-68 2912 2977 3057 3160 3270 3387 1967-68 5344 5439 5539 5665 5798 5938
1968-69 3110 3179 3260 3365 3482 3608 1968-69 5681 5780 5883 6013 6151 6303
1969-70 3338 3410 3494 3601 3720 3849 1969-70 6063 6164 6273 6406 6549 6704
1970-71 3700 3770 3853 3962 4080 4210 1970-71 6755 6853 6956 7085 7227 7382
1971-72 4026 4100 4187 4315 4456 4607 1971-72 7292 7393 7501 7653 7818 7992
1972-73 4467 4548 4641 4784 4937 5101 1972-73 8122 8241 8366 8539 8725 8924
1973-74 5094 5183 5281 5431 5589 5759 1973-74 9165 9289 9420 9600 9791 9995
82.
1974-75 6549 6679 6814 7001 7201 7415 1974-75 11431 11582 11734 11938 12148 12370
1975-76 7396 7622 7824 8078 8345 8484 1975-76 12908 13134 13336 13590 13857 14137
1976-77 8353 8535 8795 9107 9419 9783 1976-77 14580 14762 15022 15334 15646 16010
1977-78 9249 9431 9691 10003 10315 10679 1977-78 16134 16316 16576 16888 17200 17564
1978-79 9967 10149 10409 10721 11033 11397 1978-79 17322 17504 17764 18076 18388 18752
1979-80 10702 10885 11145 11457 11769 12133 1979-80 18829 19012 19272 19584 19896 20260
1980-81 11956 12138 12399 12711 13023 13387 1980-81 21326 21508 21768 22080 22392 22757
1981-82 13417 13599 13859 14249 14639 15095 1981-82 24002 24185 24445 24835 25225 25680
1982-83 14920 15164 15511 15979 16447 16993 1982-83 26785 27029 27376 27844 28312 28858
1983-84 16098 16372 16763 17231 17699 18245 1983-84 28900 29174 29564 30032 30500 31047
1984-85 17376 17649 18040 18508 18976 19523 1984-85 30990 31263 31654 32122 32590 33137
1985-86 18509 18783 19173 19641 20109 20656 1985-86 32818 33092 33482 33950 34418 34965
TABLE F2.1: REAL DISPOSABLE INCOMES TABLE F2.2: REAL DISPOSABLE INCOMES
Single Age, Invalid and Sole Parent Pensioners Single Adult Sickness Beneficiaries(1)
1964-65 3073 4625 5272 6047 6823 7599 1964-65 2134 2651 3297 4073 4849 5625
1965-66 2993 4490 5113 5862 6610 7358 1965-66 2058 2557 3180 3929 ' 4677 5425
1966-67 3096 4555 5162 5892 6621 7351 1966-67 2006 2492 3100 3830 4559 5289
1967-68 3055 4466 5053 5758 6504 7290 1967-68 1939 2409 2997 3702 4447 5234
1968-69 3150 4695 5436 6292 7206 8176 1968-69 1893 2520 3261 4117 5030 6001
1969-70 3273 5153 6093 7144 8251 9413 1969-70 2115 2722 3606 4598 5645 6747
1970-71 3280 5186 6139 7199 8311 9476 1970-71 2994 3630 4583 5642 6755 7920
1971-72(1) 3393 5471 6508 7717 8972 10279 1971-72(2) 3393 4282 5319 6528 7782 9090
1972-73 . 3831 5890 6920 8137 9401 10711 1972-73 3831 4767 5797 7014 8278 9588
83.
1973-74 3885 5770 6744 7884 9065 10288 1973-74 3885 4776 5751 6891 8072 9295
1974-75 4480 6199 7138 8218 9334 10485 1974-75 4426 5293 6232 7312 8428 9580
1975-76 4802 6540 7587 8760 9964 11200 1975-76 4802 5786 6833 8006 9210 10445
1976-77 4773 6648 8027 9516 11005 12605 1976-77 4773 5986 7365 8854 10343 11909
1977-78 4926 6640 7900 9261 10622 12084 1977-78 4926 6035 7295 8656 10017 11479
1978-79 4900 6484 7648 8906 10164 11514 1978-79 4900 5925 7089 8347 9605 10955
1979-80 4801 6241 7298 8440 9583 10809 1979-80 4801 5733 6791 7933 9075 10302
1980-81 4906 6448 7541 8711 9883 11130 1980-81 4906 5883 6976 8146 9318 10565
1981-82 4856 6362 7413 8639 9865 11178 1981-82 4856 5801 6853 8079 9305 10533
1982-83(1} 4846 6272 7319 8513 9706 10994 1982-83(2) 4846 5769 6817 8010 9203 10491
1983-84 5023 6471 7581 8778 9976 11263 1983-84 5023 6092 7201 8399 9597 10884
1984-85 5162 6741 7919 9181 10443 11790 1984-85 5162 6741 7919 9181 10443 11790
1985-86 5068 6678 7864 9128 10392 11735 1985-86 5068 6678 7864 9128 10392 11735
Notes: Notes:
$/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr $/yr

1964-65 2134 1228 905 1964-65 5630 6147 6793 7569 8345 9121
1965-66 2058 1185 873 1965-66 5488 5986 6610 7358 8107 8855
1966-67 2006 1155 851 1966-67 5284 5770 6378 7108 7837 8567
1967-68 1939 1116 823 1967-68 5523 5993 6581- 7286 8032 8818
1968-69 1893 1090 803 1968-69 5644 . 6270 7011 7867 8781 9752
1969-70 2115 1261 940 1969-70 5798 6465 7405 8456 9563 10725
1970-71 2118 1271 953 1970-71 5818 6453 7406 8466 ' 9578 10743
1971-72(2) 2444 1521 1090 1971-72(1) 5998 6890 7927 9136 10390 11698
1972-73 3442 2664 2211 1972-73 6675 7611 8641 9858 11122 12432
1973-74 3885 3885 3885 1973-74 6814 7706 8680 9820 11001 12224
1974-75 4426 4426 4426 1974-75 7473 8341 9279 10360 11476 12627
84.
1975-76 4802 4802 4526 1975-76 7991 8975 10022 11195 12399 13634
1976-77 4773 4773 3971 1976-77 7946 9160 10538 12028 13517 15116
1977-78 4926 4926 3629 1977-78 8214 9323 10583 11944 13305 14767
1978-79 4792 4792 3354 1978-79 8170 9194 10359 11617 12874 14225
1979-80 4352 4352 3046 1979-80 8003 8935 9993 11135 12277 13503
1980-81 4079 4079 2784 1980-81 8173 9151 10244 11414 12584 13832
1981-82 3957 3957 2521 1981-82 8095 9041 10092 11318 12544 13857
1982-83(2) 3963 3963 2429 1982-83(1) 8080 9003 10050 11244 12437 13725
1983-84 4292 4292 2554 1983-84 8374 9353 10462 11660 12858 14145
1984-85 4572 4572 2731(3) 1984-85 8610 9661 10839 12101 13362 14709
1985-86 4682 4532 2600(3) 1985-86 8454 9523 10710 11974 13238 14580
Notes: Notes:
TABLE F2.6: REAL DISPOSABLE INCOMES
TABLE F2.5: REAL DISPOSABLE INCOMES 1964-65 TO 1985-86 - 1985-86 Dollar Terms
1964-65 TO 1985-86 - 1985-86 Dollar Terms Single Person In Employment
Unemployment Beneficiary Couples(l) Income = 50% of AWE
No Private Income
YEAR 0 Child 1 Child 2 Child 3 Child 4 Child 5 Child

YEAR 0 Child 1 Child 2 Child 3 Child 4 Child 5 Child
$/yr $/yr $/yr $/yr $/yr $/yr
$/yr $/yr $/yr $/yr $/yr $/yr 1964-65 6246 6500 6838 7301 7758 8201
1964-65 3685 4202 4849 5625 6401 7176 1965-66 6260 6509 6845 7296 7737 8169
1965-66 3554 4053 4677 5425 6173 6922 1966-67 6486 6738 7070 7514 7949 8384
1966-67 3465 3951 4559 5289 6018 6748 1967-68 6599 6870 7209 7656 8131 8642
1967-68 3349 3819 4407 5112 5858 6644 1968-69 6883 7157 7497 7942 8432 8971
1968-69 3270 3896 4637 5494 6407 7378
1969-70 7157 7435 7773 8208 8696 9225
1969-70 3615 4222 5102 6093 7140 8243 1970-71 7561 7822 8140 8559 9024 9529
1970-71 3601 4237 5190 6249 7362 8527 1971-72 7698 7961 8270 8743 9258 9810
1971-72(2) 3981 4869 5906 7115 8369 9677 1972-73 8065 8328 8645 9134 9664 10229
1972-73 5401 6337 7367 8584 9847 11158 1973-74 8142
85.
8393 8690 9135 9623 10138

1973-74 6814 7706 8680 9820 11001 12224
1974-75 8971 9326 9694 10204 10734 11088
1974-75 7380 8248 9187 10267 11383 12534 1975-76 8941 9971 10184 10436 10718 11033
1975-76 7991 8975 10022 11195 12399 13634 1976-77 8860 9989 10541 11202 11864 12636
1976-77 7946 9160 10538 11902 13169 14537 1977-78 8965 10070 10574 11179 11784 12489
1977-78 8214 9323 10583 11904 13044 14286 1978-79 8926 9999 10465 11024 11582 12235
1978-79 8170 9194 10359 11584 12607 13723
1979-80 8706 9680 10105 10612 11120 11712
1979-80 8003 8935 9993 10925 11857 12874 1980-81 8889 9991 10378 10842 11306 11848
1980-81 8173 9151 10244 11233 12177 13200 1981-82 9035 10063 10413 10938 11464 12076
1981-82 8095 9041 9979 10981 11982 13072 1982-83 9011 10275 10803 11477 12151 12920
1982-83(2) 8080 9003 10003 11003 12005 13100 1983-84 9095 10949 12055 13249 14442 15724
1983-84 8357 9353 10417 11487 12557 13716
1984-85 9416 11310 12486 13745 15004 16348
1984-85 8610 9661 10839 12101 13362 14709 1985-86 9267 11114 12299 13561 14823 16164
1985-86 8454 9523 10710 11974 13238 14580
Notes:
===========
1964-65 11627 11976 12393 12925 13453 13980 1964-65 20644 21121 21629 22265 22902 23523
1965-66 11599 11949 12356 12884 13397 13911 1965-66 20458 20933 21427 22046 22665 23284
1966-67 11966 12322 12724 13243 13762 14271 1966-67 20996 21477 21978 22600 23203 23806
1967-68 12145 12520 12954 13487 14061 14667 1967-68 21216 21731 22264 22915 23607 24334
1968-69 12602 12995 13418 13957 14543 15179 1968-69 21895 22420 22958 23611 24304 25054
1969-70 13033 13430 13853 14387 14964 15592 1969-70 22510 23044 23570 24202 24894 25638
1970-71 13827 14198 14601 15106 15652 16247 1970-71 24187 24676 25161 25752 26395 27092
86.
1971-72 13959 14321 14717 15282 15880 16525 1971-72 24177 24661 25142 25782 26469 27208
1972-73 14683 15082 15496 16098 16746 17426 1972-73 25574 26082 26600 27306 28055 28854
1973-74 14653 15029 15414 15965 16558 17182 1973-74 25238 25718 26202 26852 27546 28278
1974-75 15746 16131 16488 16987 17528 18109 1974-75 25437 25898 26351 26949 27579 28248
1975-76 15605 16635 17123 17738 18383 19060 1975-76 26648 27678 28166 28780 29426 30103
1976-77 15464 16592 17144 17806 18468 19240 1976-77 26408 27536 28088 28749 29411 30183
1977-78 15640 16745 17249 17854 18459 19164 1977-78 27460 28565 29069 29674 30279 30985
1978-79 15517 16590 17056 17615 18174 18826 1978-79 27312 28386 28851 29410 29969 30621
1979-80 15317 16292 16717 17224 17732 18324 1979-80 26790 • 27767 28190 28697 29205 29797
1980-81 15856 16958 17346 17810 18274 18815 1980-81 27640 28742 29130 29594 30058 30599
1981-82 16263 17290 17641 18166 18691 19304 1981-82 28140 29168 29518 30043 30568 31181
1982-83 16370 17525 17944 18510 19075 19736 1982-83 28100 29254 29674 30239 30804 31465
1983-84 16633 17823 18264 18793 19322 19940 1983-84 27973 29164 29604 30133 30662 31280
1984-85 17072 18215 18638 19146 19653 20245 1984-85 28058 29199 29623 30130 30637 31230
1985-86 16584 17637 18028 18496 18964 19510 1985-86 26972 28026 28416 28884 29352 29899
Married Couple With One Income From Employment Harried Couple With One Income From Employment
1964-65 6435 6669 6992 7435 7863 8300 1964-65 11976 12304 12702 13229 13741 14248
1965-66 6452 6687 7003 7435 7857 8265 1965-66 11949 12289 12678 13186 13700 14194
1966-67 6687 6921 7234 7664 8080 8492 1966-67 12331 12668 13065 13565 14066 14566
1967-68 6820 7069 7385 7815 8267 8741 1967-68 12533 12899 13315 13839 14391 14978
1968-69 7117 7369 7687 8110 8582 9094 1968-69 13012 13383 13798 14318 14892 15510
1969-70 7401 7653 7973 8392 8858 9366 1969-70 13451 13832 14242 14759 15327 15943
1970-71 7789 8030 8335 8735 9183 9672 1970-71 14218 14577 14964 15453 15994 16577
1971-72 7938 8179 8476 8930 9425 9967 1971-72 14351 14717 15099 15644 16235 16864
1972-73 8299 8544 8843 9314 9822 10531 1972-73 15100 15478 15893 16487 17110 17772
1973-74 8378 8610 8890 9326 9794 10294 1973-74 15055 15414 15800 16347 16921 17535
87.
1974-75 9369 9724 10093 10414 10734 11088 1974-75 16169 16510 16867 17377 17923 18507
1975-76 9908 10058 10184 10436 10718 11033 1975-76 16572 17119 17607 18221 18867 19544
1976-77 9904 10290 10842 11504 12165 12938 1976-77 16525 16911 17462 18124 18786 19558
1977-78 9917 10269 10773 11378 11983 12689 1977-78 16716 17069 17573 18177 18782 19488
1978-79 9909 10235 10701 11260 11819 12471 1978-79 16586 16912 17378 17937 18496 19148
1979-80 9677 9973 10398 10905 11413 12005 1979-80 16289 16585 17009 17517 18025 18617
1980-81 10079 10350 10736 11200 11664 12207 1980-81 17045 17316 17704 18168 18632 19173
1981-82 10153 10400 10750 11275 11800 12413 1981-82 17381 17627 17977 18503 19028 19641
1982-83 10014 10577 11105 11779 12453 13222 1982-83 17373 17827 18246 18812 19377 20038
1983-84 10033 11232 12338 13531 14724 16007 1983-84 17571 18105 18547 19076 19604 20223
1984-85 10316 11581 12757 14016 15275 16619 1984-85 17972 18486 18909 19417 19924 20516
1985-86 10097 11364 12549 13811 15073 16414 1985-86 17414 17887 18278 18746 19214 19760
TABLE F2.ll: REAL DISPOSABLE INCOMES TABLE F2.12: REAL DISPOSABLE INCOMES
========
1964-65 21191 21668 22176 22797 23414 24031 1964-65 6520 6724 702T 7465 7853 8241
1965-66 21005 21475 21969 22588 23207 23806 1965-66 6548 6754 7046 7478 7852 8226
1966-67 21562 22038 22525 23128 23731 24334 1966-67 6799 7005 7299 7697 8104 8468
1967-68 21812 22328 22861 23507 24181 24890 1967-68 6929 7146 7440 7833 8258 8691
1968-69 22512 23037 23558 24194 24886 25632 1968-69 7245 7466 7757 8150 8600 9059
1969-70 23138 23647 24172 24805 25493 26228 1969-70 7559 7777 8067 8456 8884 9358
1970-71 24753 25222 25707 26297 26937 27626 1970-71 7965 8172 8449 8820 9236 9712
1971-72 24757 25218 25687 26328 27014 27750 1971-72 8152 8354 8621 9048 9513 10020
1972-73 26154 26662 27176 27882 28627 29409 1972-73 8641 8843 9268 9642 10063 10531
1973-74 25795 26276 26763 27412 28103 28836 1973-74 8670 8858 9094 9610 9982 10396
88.
1974-75 25983 26444 26900 27494 28125 28793 1974-75 9552 9874 10016 10300 10619 10974
1975-76 27615 28161 28650 29264 29909 30586 1975-76 9996 10058 10184 10436 10718 11033
1976-77 27468 27854 28406 29068 29729 30502 1976-77 9904 10290 10842 11504 12165 12938
1977-78 28536 28889 29393 29998 30603 31308 1977-78 9917 10269 10773 11378 11983 12689
1978-79 28382 28708 29174 29733 30292 30944 1978-79 9909 10235 10701 11260 11819 12471
1979-80 27762 28059 28482 28990 29498 30090 1979-80 9877 10173 10598 11105 11613 12205
1980-81 28830 29101 29489 29953 30417 30958 1980-81 10244 10515 10903 11367 11831 12372
1981-82 29258 29504 29854 30380 30905 31518 1981-82 10546 10792 11143 11668 12194 12807
1982-83 29102 29556 29976 30541 31106 31767 1982-83 10340 10903 11431 12105 12779 13548
1983-84 28911 29446 29887 30416 30945 31563 1983-84 10386 11528 12633 13826 15019 16302
1984-85 28957 29470 29894 30401 30908 31501 1984-85 10592 11731 12906 14166 15425 16770
1985-86 27802 28276 28666 29134 29602 30149 1985-86 10349 11435 12619 13881 15143 16484
1964-65 12458 12732 13085 13567 14034 14497 1964-65 23155 23533 23971 24533 25080 25627
1965-66 12486 12759 13110 13575 14035 14486 1965-66 23087 23475 23902 24449 24996 25533
1966-67 12934 13210 . 13556 14019 14473 14917 1966-67 23829 24213 24643 25190 25723 26256
1967-68 13162 13455 13817 14282 14780 15308 1967-68 24154 24583 25035 25604 26206 26838
1968-69 13723 14027 14385 14848 15364 15920 1968-69 25067 25504 25959 26532 27141 27812
1969-70 14263 14571 14930 15387 15896 16447 1969-70 25907 26339 26804 27373 27984 28646
1970-71 15074 15359 15697 16141 16622 17151 1970-71 27520 27919 28339 28864 29443 30074
1971-72 15350 15633 15964 16452 16990 17566 1971-72 27803 28188 28600 29180 29809 30472
1972-73 16083 16375 16710 17225 17776 18366 1972-73 29243 29672 30122 30745 31414 32131
1973-74 16220 16503 16816 17293 17796 18338 1973-74 29183 29578 29995 30568 31176 31826
89.
1974-75 17869 18223 18592 19102 19647 20231 1974-75 31189 31601 32016 32572 33145 33751
1975-76 17883 18429 18918 19532 20177 20513 1975-76 31210 31757 32245 32859 33505 34182
1976-77 17719 18105 18656 19318 19980 20752 1976-77 30928 31314 31865 32527 33189 33961
1977-78 17931 18284 18788 19393 19998 20704 1977-78 31279 31632 32136 32741 33346 34052
1978-79 17857 18183 18648 19207 19766 20418 1978-79 31034 31360 31825 32384 32943 33595
1979-80 17411 17709 18132 18640 19147 19739 1979-80 30633 30931 31354 31861 32369 32961
1980-81 17779 18049 18437 18901 19365 19906 1980-81 31712 31982 32369 32833 33297 33840
1981-82 18072 18317 18667 19192 19718 20332 1981-82 32329 32575 32925 33451 33976 34589
1982-83 18023 18318 18737 19302 19867 20527 1982-83 32355 32650 33069 33634 34200 34859
1983-84 18190 18499 18941 19470 19999 20616 1983-84 32655 32965 33406 33934 34463 35081
1984-85 18832 19128 19552 20059 20567 21159 1984-85 33588 33883 34307 34814 35322 35915
1985-86 18509 18783 19173 19641 20109 20656 1985-86 32818 33092 33482 33950 34418 34965
TABLE F3.1: INDICES OF REAL DISPOSABLE INCOMES TABLE F3.2: INDICES OF REAL DISPOSABLE INCOMES
1964-65 TO 1985-86 - Index Base: 1976-77 = 100.0 1964-65 TO 1985-86 - Index Base: 1976-77 = 100.0
Single Age, Invalid and Sole Parent Pensioners Single Adult Sickness Beneficiaries(1)
1964-65 64.4 69.6 65.7 63.6 62.0 60.3 1964-65 44.7 44.3 44.8 46.0 46.9 47.2
1965-66 62.7 67.5 63.7 61.6 60.1 58.4 1965-66 43.1 42.7 43.2 44.4 45.2 45.6
1966-67 64.9 68.5 64.3 61.9 60.2 58.3 1966-67 42.0 41.6 42.1 43.3 44.1 44.4
1967-68 64.0 67.2 63.0 60.5 59.1 57.8 1967-68 40.6 40.2 40.7 41.8 43.0 43.9
1968-69 - 66.0 70.6 67.7 66.1 65.5 64.9 1968-69 39.7 42.1 44.3 46.5 48.6 50.4
1969-70 68.6 77.5 75.9 75.1 75.0 74.7 1969-70 44.3 45.5 49.0 51.9 54.6 56.7
1970-71 68.7 78.0 76.5 75.6 75.5 75.2 1970-71 62.7 60.6 62.2 63.7 65.3 66.5
1971-72(1) 71.1 82.3 81.1 81.1 81.5 81.6 1971-72(2) 71.1 71.5 72.2 73.7 75.2 76.3
1972-73 80.3 88.6 86.2 85.5 85.4 85.0 1972-73 80.3 79.6 78.7 79.2 80.0 80.5
86.8 84.0 82.9 82.4 81.6 1973-74 81.4 79.8 78.1 77.8 78.0 78.0
90.
1973-74 81.4
1974-75 93.9 93.2 88.9 86.4 84.8 83.2 1974-75 92.7 88.4 84.6 82.6 81.5 80.4
1975-76 100.6 98.4 94.5 92.1 90.5 88.9 1975-76 100.6 96.7 92.8 90.4 89.0 87.7
1976-77 100.0 100.0 100.0 100.0 100.0 100.0 1976-77 100.0 100.0 100.0 100.0 100.0 100.0
1977-78 103.2 99.9 98.4 , 97.3 96.5 95.9 1977-78 103.2 100.8 99.1 97.8 96.8 96.4
1978-79 102.7 97.5 95.3 93.6 92.4 91.4 1978-79 102.7 99.0 96.3 94.3 92.9 92.0
1979-80 100.6 93.9 90.9 88.7 87.1 85.8 1979-80 100.6 . 95.8 92.2 89.6 87.7 86.5
1980-81 102.8 97.0 93.9 91.5 89.8 88.3 1980-81 102.8 98.3 94.7 92.0 90.1 88.7
1981-82 101.7 95.7 92.4 90.8 89.6 88.7 1981-82 101.7 96.9 93.0 91.2 90.0 88.4
1982-83(1) 101.5 94.3 91.2 89.5 88.2 87.2 1982-83(2) 101.5 96.4 92.6 90.5 89.0 88.1
1983-84 105.2 97.3 94.4 92.3 90.7 89.4 1983-84 105.2 101.8 97.8 94.9 92.8 91.4
1984-85 108.2 101.4 98.7 96.5 94.9 93.5 1984-85 108.2 112.6 107.5 103.7 101.0 99.0
1985-86 106.2 100.5 98.0 95.9 94.4 93.1 1985-86 106.2 111.6 106.8 103.1 100.5 98.5
Notes: Notes:
1964-65 44.7 25.7 22.8 1964-65 70.8 67.1 64.5 62.9 61.7 60.3
1965-66 43.1 24.8 22.0 1965-66 69.1 65.4 62.7 61.2 60.0 58.6
1966-67 42.0 24.2 21.4 1966-67 66.5 63.0 60.5 59.1 58.0 56.7
1967-68 40.6 23.4 20.7 . 1967-68 69.5 65.4 62.4 60.6 59.4 58.3
1968-69 39.7 22.8 20.2 1968-69 71.0 68.5 66.5 65.4 65.0 64.5
1969-70 44.3 26.4 23.7 1969-70 73.0 70.6 70.3 70.3 70.7 71.0
1970-71 44.4 26.6 24.0 1970-71 73.2 70.5 70.3 70.4 70.9 71.1
1971-72(2) 51.2 31.9 27.5 1971-72(1) 75.5 75.2 75.2 76.0 76.9 77.4
1972-73 72.1 55.8 55.7 1972-73 84.0 83.1 82.0 82.0 82.3 82.2
1973-74 81.4 81.4 97.8 1973-74 85.8 84.1 82.4 81.6 81.4 80.9
91.
1974-75 92.7 92.7 111.4 1974-75 94.0 91.1 88.1 86.1 84.9 83.5
1975-76 100.6 100.6 114.0 1975-76 100.6 98.0 95.1 93.1 91.7 90.2
1976-77 100.0 100.0 100.0 1976-77 100.0 100.0 100.0 100.0 100.0 100.0
1977-78 103.2 103.2 91.4 1977-78 103.4 101.8 100.4 99.3 98.4 97.7
1978-79 100.4 100.4 84.5 1978-79 102.8 100.4 98.3 96.6 95.2 94.1
1979-80 91.2 91.2 76.7 1979-80 100.7 97.5 94.8 92.6 90.8 89.3
1980-81 85.5 85.5 70.1 1980-81 102.8 99.9 97.2 94.9 93.1 91.5
1981-82 82.9 82.9 63.5 1981-82 101.9 98.7 95.8 94.1 92.8 91.7
1982-83(2) 83.0 83.0 61.2 1982-83(1) 101.7 98.3 95.4 93.5 92.0 90.8
1983-84 89.9 89.9 64.3 1983-84 105.4 102.1 99.3 96.9 95.1 93.6
1984-85 95.8 95.8 68.8(3) 1984-85 108.4 105.5 102.9 100.6 98.9 97.3
1985-86 98.1 95.0 65.5(3) 1985-86 106.4 104.0 101.6 99.6 97.9 96.5
Notes: Notes:
Unemployment Beneficiary Couples(1) Single Person In Employment
1964-65 46.4 45.9 46.0 47.3 48.6 49.4 1964-65 70.5 65.1 64.9 65.2 65.4 64.9
1965-66 44.7 44.3 44.4 45.6 46.9 47.6 1965-66 70.6 65.2 64.9 65.1 65.2 64.6
1966-67 43.6 43.1 43.3 44.4 45.7 46.4 1966-67 73.2 67.5 67.1 67.1 67.0 66.4
1967-68 42.1 41.7 41.8 42.9 44.5 45.7 1967-68 74.5 • 68.8 68.4 68.3 68.5 68.4
1968-69 41.1 42.5 44.0 46.2 48.7 50.8 1968-69 77.7 71.6 71.1 70.9 71.1 71.0
1969-70 45.5 46.1 48.4 51.2 54.2 56.7 1969-70 80.8 74.4 73.7 73.3 73.3 73.0
1970-71 45.3 46.3 49.3 52.5 55.9 58.7 1970-71 85.3 78.3 77.2 76.4 76.1 75.4
1971-72(2) 50.1 53.2 56.0 59.8 63.6 66.6 1971-72 86.9 79.7 78.5 78.0 78.0 77.6
1972-73 68.0 69.2 69.9 72.1 74.8 76.8 1972-73 91.0 83.4 82.0 81.5 81.5 80.9
1973-74 85.8 84.1 82.4 82.5 83.5 84.1 1973-74 91.9 84.0 82.4 81.5 . 81.1 80.2
1974-75 92.9 90.0 87.2 86.3 86.4 86.2 1974-75 101.2 93.4 92.0 91.1 90.5 87.8
92.
1975-76 100.6 98.0 95.1 94.1 94.2 93.8 1975-76 100.9 99.8 96.6 93.2 90.3 87.3
1976-77 100.0 100.0 100.0 100.0 100.0 100.0 1976-77 100.0 100.0 100.0 100.0 100.0 100.0
1977-78 103.4 101.8 100.4 100.0 99.1 98.3 1977-78 101.2 100.8 100.3 99.8 99.3 98.8
1978-79 102.8 100.4 98.3 97.3 95.7 94.4 1978-79 100.7 100.1 99.3 98.4 97.6 96.8
1979-80 100.7 97.5 94.8 91.8 90.0 88.6 1979-80 98.3 96.9 95.9 94.7 93.7 92.7
1980-81 102.8 99.9 97.2 94.4 92.5 90.8 1980-81 100.3 100.0 98.5 96.8 95.3 93.8
1981-82 101.9 98.7 94.7 92.3 91.0 89.9 1981-82 102.0 100.7 98.8 97.6 96.6 95.6
1982-83(2) 101.7 98.3 94.9 92.4 91.2 90.1 1982-83 101.7 102.9 102.5 102.5 102.4 102.2
1983-84 105.2 102.1 98.8 96.5 95.4 94.4 1983-84 102.6 109.6 114.4 118.3 121.7 124.4
1984-85 108.4 105.5 102.9 101.7 101.5 101.2 1984-85 106.3 113.2 118.5 122.7 126.5 129.4
1985-86 106.4 104.0 101.6 100.6 100.5 100.3 1985-86 104.6 111.3 116.7 121.1 124.9 127.9
Notes:
Income = 100% Of AWE Income = 200% of AWE
1964-65 75.2 72.2 72.3 72.6 72.8 72.7 1964-65 78.2 76.7 77.0 77.4 77.9 77.9
1965-66 75.0 72.0 72.1 72.4 72.5 72.3 1965-66 77.5 76.0 76.3 76.7 77.1 77.1
1966-67 77.4 74.3 74.2 74.4 74.5 74.2 1966-67 79.5 78.0 78.2 78.6 78.9 78.9
1967-68 78.5 75.5 75.6 75.7 76.1 76.2 1967-68 80.3 78.9 79.3 79.7 80.3 80.6
1968-69 81.5 78.3 78.3 78.4 78.8 78.9 1968-69 82.9 81.4 81.7 82.1 82.6 83.0
1969-70 84.3 80.9 80.8 80.8 81.0 81.0 1969-70 85.2 83.7 83.9 84.2 84.6 84.9
1970-71 89.4 85.6 85.2 84.8 84.8 84.4 1970-71 91.6 89.6 89.6 89.6 89.7 89.8
1971-72 90.3 86.3 85.8 85.8 86.0 85.9 1971-72 91.6 89.6 89.5 89.7 90.0 90.1
1972-73 94.9 90.9 90.4 90.4 90.7 90.6 1972-73 96.8 94.7 94.7 95.0 95.4 95.6
93.
1973-74 94.8 90.6 89.9 89.7 89.7 89.3 1973-74 95.6 93.4 93.3 93.4 93.7 93.7
1974-75 101.8 97.2 96.2 95.4 94.9 94.1 1974-75 96.3 94.1 93.8 93.7 93.8 93.6
1975-76 100.9 100.3 99.9 99.6 99.5 99.1 1975-76 100.9 100.5 100.3 100.1 100.0 99.7
1976-77 100.0 100.0 100.0 100.0 100.0 100.0 1976-77 100.0 100.0 100.0 100.0 100.0 100.0
1977-78 101.1 100.9 100.6 100.3 100.0 99.6 1977-78 104.0 103.7 103.5 103.2 103.0 102.7
1978-79 100.3 100.0 99.5 98.9 98.4 97.8 1978-79 103.4 103.1 102.7 102.3 101.9 101.5
1979-80 99.1 98.2 97.5 96.7 96.0 95.2 1979-80 101.4 100.8 100.4 99.8 99.3 98.7
1980-81 102.5 102.2 101.2 100.0 99.0 97.8 1980-81 104.7 104.4 103.7 102.9 102.2 101.4
1981-82 105.2 104.2 102.9 102.0 101.2 100.3 1981-82 106.6 105.9 105.1 104.5 103.9 103.3
1982-83 105.9 105.6 104.7 104.0 103.3 102.6 1982-83 106.4 106.2 105.6 105.2 104.7 104.2
1983-84 107.6 107.4 106.5 105.5 104.6 103.6 1983-84 105.9 105.9 105.4 104.8 104.3 103.6
1984-85 110.4 109.8 108.7 107.5 106.4 105.2 1984-85 106.2 106.0 105.5 104.8 104.2 103.5
1985-86 107.2 106.3 . 105.2 103.9 102.7 101.4 1985-86 102.1 101.8 101.2 100.5 99.8 99.1
1964-65 65.0 64.8 64.5 64.6 64.6 64.2 1964-65 72.5 72.8 72.7 73.0 73.1 72.9
1965-66 65.1 65.0 64.6 64.6 64.6 63.9 1965-66 72.3 72.7 72.6 72.8 72.9 72.6
1966-67 67.5 67.3 66.7 66.6 66.4 65.6 1966-67 74.6 74.9 74.8 74.8 74.9 74.5
1967-68 68.9 68.7 68.1 67.9 68.0 67.6 1967-68 75.8 76.3 76.3 76.4 76.6 76.6
1968-69 71.9 71.6 70.9 70.5 70.5 70.3 1968-69 78.7 79.1 79.0 79.0 79.3 79.3
1969-70 74.7 74.4 73.5 73.0 72.8 72.4 1969-70 81.4 81.8 81.6 81.4 81.6 81.5
1970-71 78.6 78.0 76.9 75.9 75.5 74.8 1970-71 86.0 86.2 85.7 85.3 85.1 84.8
1971-72 80.2 79.5 78.2 77.6 77.5 77.0 1971-72 86.8 87.0 86.5 86.3 86.4 86.2
1972-73 83.8 83.0 81.6 81.0 80.7 81.4 1972-73 91.4 91.5 91.0 91.0 91.1 90.9
1973-74 84.6 83.7 82.0 81.1 80.5 79.6 1973-74 91.1 91.2 90.5 90.2 90.1 89.7
94.
1974-75 94.6 94.5 93.1 90.5 88.2 85.7 1974-75 97.8 97.6 96.6 95.9 95.4 94.6
1975-76 100.0 97.7 93.9 90.7 88.1 85.3 1975-76 100.3 101.2 100.8 100.5 100.4 99.9
1976-77 100.0 100.0 100.0 100.0 100.0 100.0 1976-77 100.0 100.0 100.0 100.0 100.0 100.0
1977-78 100.1 99.8 99.4 98.9 98.5 98.1 1977-78 101.2 100.9 100.6 100.3 100.0 99.6
1978-79 100.1 99.5 98.7 97.9 97.2 96.4 1978-79 100.4 100.0 99.5 99.0 98.5 97.9
1979-80 97.7 96.9 95.9 94.8 93.8 92.8 1979-80 98.6 98.1 97.4 96.7 95.9 95.2
1980-81 101.8 100.6 99.0 97.4 95.9 94.4 1980-81 103.2 102.4 101.4 100.2 99.2 98.0
1981-82 102.5 101.1 99.2 98.0 97.0 95.9 1981-82 105.2 104.2 103.0 102.1 101.3 100.4
1982-83 101.1 102.8 102.4 102.4 102.4 102.2 1982-83 105.1 105.4 104.5 103.8 103.1 102.5
1983-84 101.3 109.1 113.8 117.6 121.0 123.7 1983-84 106.3 107.1 106.2 105.3 104.4 103.4
1984-85 104.2 112.5 117.7 121.8 125.6 128.5 1984-85 108.8 109.3 108.3 107.1 106.1 .104.9
1985-86 101.9 110.4 115.7 120.1 123.9 126.9 1985-86 105.4 105.8 104.7 103.4 102.3 101.0
TABLE F3.ll: INDICES OF REAL DISPOSABLE INCOMES TABLE F3.12: INDICES OF REAL DISPOSABLE INCOMES
1964-65 77.1 77.8 78.1 78.4 78.8 78.8 1964-65 65.8 65.3 64.8 64.9 64.5 63.7
1965-66 76.5 77.1 77.3 77.7 78.1 78.0 1965-66 66.1 65.6 65.0 65.0 64.5 63.6
1966-67 78.5 79.1 79.3 79.6 79.8 79.8 1966-67 68.6 68.1 67.3 66.9 66.6 65.5
1967-68 79.4 80.2 80.5 80.9 81.3 81.6 1967-68 70.0 69.4 68.6 68.1 67.9 67.2
1968-69 82.0 82.7 82.9 83.2 83.7 84.0 1968-69 73.2 72.6 71.5 70.8 70.7 70.0
1969-70 84.2 84.9 85.1 85.3 85.7 86.0 1969-70 76.3 75.6 74.4 73.5 73.0 72.3
1970-71 90.1 90.5 90.5 90.5 90.6 90.6 1970-71 80.4 79.4 77.9 76.7 75.9 75.1
1971-72 90.1 90.5 90.4 90.6 90.9 91.0 1971-72 82.3 81.2 79.5 78.7 78.2 77.4
95.
1972-73 95.2 95.7 95.7 95.9 96.3 96.4 1972-73 87.2 85.9 85.5 83.8 82.7 81.4
1973-74 93.9 94.3 94.2 94.3 94.5 94.5 1973-74 87.5 86.1 83.9 83.5 82.1 80.4
1974-75 94.6 94.9 94.7 94.6 94.6 94.4 1974-75 96.4 96.0 92.4 89.5 87.3 84.8
1975-76 100.5 101.1 100.9 100.7 100.6 100.3 1975-76 100.9 97.7 93.9 90.7 88.1 85.3
1976-77 100.0 100.0 100.0 100.0 100.0 100.0 1976-77 100.0 100.0 100.0 100.0 100.0 100.0
1977-78 103.9 103.7 103.5 103.2 102.9 102.6 1977-78 100.1 99.8 99.4 98.9 98.5 98.1
1978-79 103.3 103.1 102.7 102.3 101.9 101.5 1978-79 100.1 99.5 98.7 97.9 97.2 96.4
1979-80 101.1 100.7 100.3 99.7 99.2 98.7 1979-80 99.7 98.9 97.7 96.5 95.5 94.3
1980-81 105.0 104.5 103.8 103.0 102.3 101.5 1980-81 103.4 102.2 100.6 98.8 97.2 95.6
1981-82 106.5 105.9 105.1 104.5 104.0 103.3 1981-82 106.5 104.9 102.8 101.4 100.2 99.0
1982-83 105.9 106.1 105.5 105.1 104.6 104.1 1982-83 104.4 106.0 105.4 105.2 105.0 104.7
1983-84 105.3 105.7 105.2 104.6 104.1 103.5 1983-84 104.9 112.0 116.5 120.2 123.5 126.0
1984-85 105.4 105.8 105.2 104.6 104.0 103.3 1984-85 106.9 114.0 119.0 123.1 126.8 129.6
1985-86 101.2 101.5 100.9 100.2 99.6 98.8 1985-86 104.5 111.1 116.4 120.7 124.5 127.4
1964-65 70.3 70.3 70.1 70.2 70.2 69.9 1964-65 74.9 75.2 75.2 75.4 75.6 75.5
1965-66 70.5 70.5 70.3 70.3 70.2 69.8 1965-66 74.6 75.0 75.0 75.2 75.3 75.2
1966-67 73.0 73.0 72.7 72.6 72.4 71.9 1966-67 77.0 77.3 77.3 77.4 77.5 77.3
1967-68 74.3 74.3 74.1 73.9 74.0 73.8 1967-68 78.1 78.5 78.6 78.7 79.0 79.0
1968-69 77.4 77.5 77.1 76.9 76.9 76.7 1968-69 81.1 81.4 81.5 81.6 81.8 81.9
1969-70 80.5 80.5 80.0 79.7 79.6 79.3 1969-70 83.8 84.1 84.1 84.2 84.3 84.3
1970-71 85.1 84.8 84.1 83.6 83.2 82.6 1970-71 89.0 89.2 88.9 88.7 88.7 88.6
1971-72 86.6 86.3 85.6 85.2 85.0 84.6 1971-72 89.9 90.0 89.8 89.7 89.8 89.7
1972-73 90.8 90.4 89.6 89.2 89.0 88.5 1972-73 94.6 94.8 94.5 94.5 94.7 94.6
1973-74 91.5 91.2 90.1 89.5 89.1 88.4 1973-74 94.4 94.5 94.1 94.0 93.9 93.7
1974-75 100.8 100.7 99.7 98.9 98.3 97.5 1974-75 100.8 100.9 100.5 100.1 99.9 99.4
96.
1975-76 100.9 101.8 101.4 101.1 101.0 98.8 1975-76 100.9 101.4 101.2 101.0 101.0 100.6
1976-77 100.0 100.0 100.0 100.0 100.0 100.0 1976-77 100.0 100.0 100.0 100.0 100.0 100.0
1977-78 101.2 101.0 100.7 100.4 100.1 99.8 1977-78 101.1 101.0 100.8 100.7 100.5 100.3
1978-79 100.8 100.4 100.0 99.4 98.9 98.4 1978-79 100.3 100.1 99.9 99.6 99.3 98.9
1979-80 98.3 97.8 97.2 96.5 95.8 95.1 1979-80 99.0 98.8 98.4 98.0 97.5 97.1
1980-81 100.3 99.7 98.8 97.8 96.9 95.9 1980-81 102.5 102.1 101.6 100.9 100.3 99.6
1981-82 102.0 101.2 100.1 99.3 98.7 98.0 1981-82 104.5 104.0 103.3 102.8 102.4 101.8
1982-83 101.7 101.2 100.4 99.9 99.4 98.9 1982-83 104.6 104.3 103.8 103.4 103.0 102.6
1983-84 102.7 102.2 101.5 100.8 100.1 99.3 1983-84 105.6 105.3 104.8 104.3 103.8 103.3
1984-85 106.3 105.7 104.8 103.8 102.9 102.0 1984-85 108.6 108.2 107.7 107.0 106.4 105.8
1985-86 104.5 103.7 102.8 101.7 100.6 99.5 1985-86 106.1 105.7 105.1 104.4 103.7 103,0
TABLE F4.1: DISPOSABLE INCOMES RELATIVE TO THOSE OF A TABLE F4.2: DISPOSABLE INCOMES RELATIVE TO THOSE OF A
SINGLE PERSON EARNING AWE SINGLE PERSON EARNING AWE
1964-65 TO 1985-86 1964-65 TO 1985-86
Single Age, Invalid and Sole parent pensioners Single Adult Sickness Beneficiaries(l)
1964-65 26.4 39.8 45.3 52.0 58.7 65.4 1964-65 18.3 22.8 28.4 35.0 41.7 48.4
1965-66 25.8 38.7 . 44.1 50.5 57.0 63.4 1965-66 17.7 22.0 27.4 33.9 40.3 46.8
1966-67 25.9 38.1 43.1 49.2 55.3 61.4 1966-67 16.8 20.8 25.9 32.0 38.1 44.2
1967-68 25.2 36.8 41.6 47.4 53.6 60.0 1967-68 16.0 19.8 24.7 30.5 36.6 43.1
1968-69 25.0 37.3 43.1 49.9 57.2 64.9 1968-69 15.0 20.0 25.9 32.7 39.9 47.6
1969-70 25.1 39.5 46.8 54.8 63.3 72.2 1969-70 16.2 20.9 27.7 35.3 43.3 51.8
1970-71 23.7 37.5 44.4 52.1 60.1 68.5 1970-71 21.7 26.3 33.1 40.8 48.9 57.3
1971-72(1) 24.3 39.2 46.6 55.3 64.3 73.6 1971-72(2) 24.3 30.7 38.1 46.8 55.7 65.1
1972-73 26.1 40.1 47.1 55.4 64.0 73.0 1972-73 26.1 32.5 39.5 47.8 56.4 65.3
1973-74 26.5 39.4 46.0 53.8 61.9 70.2 1973-74 26.5 32.6 39.2 47.0 55.1 63.4
97.
1974-75 28.5 39.4 45.3 52.2 59.3 66.6 1974-75 28.1 33.6 39.6 46.4 53.5 60.8
1975-76 30.8 41.9 48.6 56.1 63.9 71.8 1975-76 30.8 37.1 43.8 51.3 59.0 66.9
1976-77 30.9 43.0 51.9 61.5 71.2 81.5 1976-77 30.9 38.7 47.6 57.3 66.9 77.0
1977-78 31.5 42.5 50.5 59.2 67.9 77.3 1977-78 31.5 38.6 46.6 55.3 64.1 73.4
1978-79 31.6 41.8 49.3 57.4 65.5 74.2 1978-79 31.6 38.2 45.7 53.8 61.9 70.6
1979-80 31.3 40.7 47.6 55.1 62.6 70.6 1979-80 31.3 37.4 44.3 51.8 59.2 67.3
1980-81 30.9 40.7 47.6 54.9 62.3 70.2 1980-81 30.9 37.1 44.0 51.4 58.8 66.6
1981-82 29.9 39.1 45.6 53.1 60.7 68.7 1981-82 29.9 35.7 42.1 49.7 57.2 64.8
1982-83(1) 29.6 38.3 44.7 52.0 59.3 67.2 1982-83(2) 29.6 35.2 41.6 48.9 56.2 64.1
1983-84 30.2 38.9 45.6 52.8 60.0 67.7 1983-84 30.2 36.6 43.3 50.5 57.7 65.4
1984-85 30.2 39.5 46.4 53.8 61.2 69.1 1984-85 30.2 39.5 46.4 53.8 61.2 69.1
1985-86 30.6 40.3 47.4 55.0 62.7 70.8 1985-86 30.6 40.3 47.4 55.0 62.7 70.8
Notes: Notes:
1964-65 TO 1985-86 1964-65 TO 1985-86
1964-65 18.3 10.6 7.8 1964-65 48.4 52.9 58.4 65.1 71.8 78.4
1965-66 17.7 10.2 7.5 1965-66 47.3 51.6 57.0 63.4 69.9 76.3
1966-67 16.8 9.7 7.1 1966-67 44.2 48.2 53.3 59.4 65.5 71.6
1967-68 16.0 9.2 6.8 1967-68 45.5 49.3 54.2 60.0 66.1 72.6
1968-69 15.0 8.6 6.4 1968-69 44.8 49.8 55.6 62.4 69.7 77.4
1969-70 16.2 9.7 7.2 1969-70 44.5 49.6 56.8 64.9 73.4 82.3
1970-71 15.3 9.2 6.9 1970-71 42.1 46.7 53.6 61.2 69.3 77.7
1971-72(2) 17.5 10.9 7.8 1971-72(1) 43.0 49.4 56.8 65.4 74.4 83.8
1972-73 23.4 18.1 15.1 1972-73 45.5 51.8 58.9 67.1 75.7 84.7
1973-74 26.5 26.5 26.5 1973-74 46.5 52.6 59.2 67.0 75.1 83.4
1974-75 28.1 28.1 28.1 1974-75 47.5 53.0 58.9 65.8 72.9 80.2
1975-76 30.8 30.8 29.0 1975-76 51.2 57.5 64.2 71.7 79.5 87.4
98.
1976-77 30.9 30.9 25.7 1976-77 51.4 59.2 68.1 77.8 87.4 97.8
1977-78 31.5 31.5 23.2 1977-78 52.5 59.6 67.7 76.4 85.1 94.4
1978-79 30.9 30.9 21.6 1978-79 52.6 59.3 66.8 74.9 83.0 91.7
1979-80 28.4 28.4 19.9 1979-80 52.2 58.3 65.2 72.7 80.1 88.2
1980-81 25.7 25.7 17.6 1980-81 51.5 57.7 64.6 72.0 79.4 87.2
1981-82 24.3 24.3 15.5 1981-82 49.8 55.6 62.1 69.6 77.1 85.2
1982-83(2) 24.2 24.2 14.8 1982-83(1) 49.4 55.0 61.4 68.7 76.0 83.8
1983-84 25.8 25.8 15.4 1983-84 50.3 56.2 62.9 70.1 77.3 85.0
1984-85 26.8 26.8 16.0(3) 1984-85 50.4 56.6 63.5 70.9 78.3 86.2
1985-86 28.2 27.3 15.7(3) 1985-86 51.0 57.4 64.6 72.2 79.8 87.9
Notes: Notes:
2 - Benefit rates have been averaged to exclude the
effect of the 27th payday in this year.
3 - Based on the higher rate of benefit payable to
persons in receipt of benefit for 6 months or more.
1964-65 TO 1985-86 1964-65 TO 1985-86
Unemployment Beneficiary Couples(l) Single Person In Employment
% % % % % % % % '% % % %
1964-65 31.7 36.1 41.7 48.4 55.0 61.7 1964-65 53.7 55.9 58.8 62.8 66.7 70.5
1965-66 30.6 34.9 40.3 46.8 53.2 59.7 1965-66 54.0 56.1 59.0 62.9 66.7 70.4
1966-67 29.0 33.0 38.1 44.2 50.3 56.4 1966-67 54.2 56.3 59.1 62.8 66.4 70.1
1967-68 27.6 31.4 36.3 42.1 48.2 54.7 1967-68 54.3 56.6 59.4 63.0 67.0 71.2
1968-69 25.9 30.9 36.8 43.6 50.8 58.5 1968-69 54.6 56.8 59.5 63.0 66.9 71.2
1969-70 27.7 32.4 39.1 46.8 54.8 63.2 1969-70 54.9 57.0 59.6 63.0 66.7 70.8
1970-71 26.0 30.6 37.5 45.2 53.2 61.7 1970-71 54.7 56.6 58.9 61.9 65.3 68.9
1971-72(2) 28.5 34.9 42.3 51.0 60.0 69.3 1971-72 55.1 57.0 59.2 62.6 66.3 70.3
1972-73 36.8 43.2 50.2 58.5 67.1 76.0 1972-73 54.9 56.7 58.9 62.2 65.8 69.7
1973-74 46.5 52.6 59.2 67.0 75.1 83.4 1973-74 55.6 57.3 59.3 62.3 65.7 69.2
99.
1974-75 46.9 52.4 58.3 65.2 72.3 79.6 1974-75 57.0 59.2 61.6 64.8 68.2 70.4
1975-76 51.2 57.5 64.2 71.7 79.5 87.4 1975-76 57.3 63.9 65.3 66.9 68.7 70.7
1976-77 51.4 59.2 68.1 77.0 85.2 94.0 1976-77 57.3 64.6 68.2 72.4 76.7 81.7
1977-78 52.5 59.6 67.7 76.1 83.4 91.3 1977-78 57.3 64.4 67.6 71.5 75.3 79.9
1978-79 52.6 59.3 66.8 74.7 81.2 88.4 1978-79 57.5 64.4 67.4 71.0 74.6 78.8
1979-80 52.2 58.3 65.2 71.3 77.4 84.0 1979-80 56.8 63.2 66.0 69.3 72.6 76.5
1980-81 51.5 57.7 64.6 70.8 76.8 83.3 1980-81 56.1 63.0 65.5 68.4 71.3 74.7
1981-82 49.8 55.6 61.4 67.5 73.7 80.4 1981-82 55.6 61.9 64.0 67.3 70.5 74.3
1982-83(2) 49.4 55.0 61.1 67.2 73.3 80.0 1982-83 55.0 62.8 66.0 70.1 74.2 78.9
1983-84 50.2 56.2 62.6 69.1 75.5 82.5 1983-84 54.7 65.8 72.5 79.7 86.8 94.5
1984-85 50.4 56.6 63.5 70.9 78.3 86.2 1984-85 55.2 66.2 73.1 80.5 87.9 95.8
1985-86 51.0 57.4 64.6 72.2 79.8 87.9 1985-86 55.9 67.0 74.2 81.8 89.4 97.5
Notes:
1964-65 TO 1985-86 1964-65 TO 1985-86
1964-65 100.0 103.0 106.6 111.2 115.7 120.2 1964-65 177.5 181.7 186.0 191.5 197.0 202.3
1965-66 100.0 103.0 106.5 111.1 115.5 119.9 1965-66 176.4 180.5 184.7 190.1 195.4 200.7
1966-67 100.0 103.0 106.3 110.7 115.0 119.3 1966-67 175.5 179.5 183.7 188.9 193.9 198.9
1967-68 100.0 103.1 106.7 111.1 115.8 120.8 1967-68 174.7 178.9 183.3 188.7 194.4 200.4
1968-69 100.0 103.1 106.5 110.7 115.4 120.4 1968-69 173.7 177.9 182.2 187.4 192.9 198.8
1969-70 100.0 103.0 106.3 110.4 114.8 119.6 1969-70 172.7 176.8 180.9 185.7 191.0 196.7
1970-71 100.0 102.7 105.6 109.3 113.2 117.5 1970-71 174.9 178.5 182.0 186.2 190.9 195.9
1971-72 100.0 102.6 105.4 109.5 113.8 118.4 1971-72 173.2 176.7 180.1 184.7 189.6 194.9
1972-73 100.0 102.7 105.5 109.6 114.1 118.7 1972-73 174.2 177.6 181.2 186.0 191.1 196.5
100.
1973-74 100.0 102.6 105.2 109.0 113.0 117.3 1973-74 172.2 175.5 178.8 183.2 188.0 193.0
1974-75 100.0 102.4 104.7 107.9 111.3 115.0 1974-75 161.5 164.5 167.4 171.1 175.2 179.4
1975-76 100.0 106.6 109.7 113.7 117.8 122.1 1975-76 170.8 177.4 180.5 184.4 188.6 192.9
1976-77 100.0 107.3 110.9 115.1 119.4 124.4 1976-77 170.8 178.1 181.6 185.9 190.2 195.2
1977-78 100.0 107.1 110.3 114.2 118.0 122.5 1977-78 175.6 182.6 185.9 189.7 193.6 198.1
1978-79 100.0 106.9 109.9 113.5 117.1 121.3 1978-79 176.0 182.9 185.9 189.5 193.1 197.3
1979-80 100.0 106.4 109.1 112.4 115.8 119.6 1979-80 174.9 181.3 184.0 187.3 190.7 194.5
1980-81 100.0 106.9 109.4 112.3 115.2 118.7 1980-81 174.3 181.3 183.7 186.6 189.6 193.0
1981-82 100.0 106.3 108.5 111.7 114.9 118.7 1981-82 173.0 179.4 181.5 184.7 188.0 191.7
1982-83 100.0 107.1 109.6 113.1 116.5 120.6 1982-83 171.6 178.7 181.3 184.7 188.2 192.2
1983-84 100.0 107.2 109.8 113.0 116.2 119.9 1983-84 168.2 175.3 178.0 181.2 184.3 188.1
1984-85 100.0 106.7 109.2 112.1 115.1 118.6 1984-85 164.3 171.0 173.5 176.5 179.5 182.9
1985-86 100.0 106.3 108.7 111.5 114.4 117.6 1985-86 . 162.6 169.0 171.3 174.2 177.0 180.3
1964-65 TO 1985-86 1964-65 TO 1985-86
1964-65 55.3 57.4 60.1 63.9 67.6 71.4 1964-65 103.0 105.8 109.2 113.8 118.2 122.5
1965-66 55.6 57.7 60.4 64.1 67.7 71.3 1965-66 103.0 106.0 109.3 113.7 118.1 122.4
1966-67 55.9 57.8 60.5 64.0 67.5 71.0 1966-67 103.0 105.9 109.2 113.4 117.5 121.7
1967-68 56.2 58.2 60.8 64.3 68.1 72.0 1967-68 103.2 106.2 109.6 114.0 118.5 123.3
1968-69 56.5 58.5 61.0 64.4 68.1 72.2 1968-69 103.3 106.2 109.5 113.6 118.2 123.1
1969-70 56.8 58.7 61.2 64.4 68.0 71.9 1969-70 103.2 106.1 109.3 113.2 117.6 122.3
1970-71 56.3 58.1 60.3 63.2 66.4 69.9 1970-71 102.8 105.4 108.2 111.8 115.7 119.9
1971-72 56.9 58.6 60.7 64.0 67.5 71.4 1971-72 102.8 105.4 108.2 112.1 116.3 120.8
101.
1972-73 56.5 58.2 60.2 63.4 66.9 71.7 1972-73 102.8 105.4 108.2 112.3 116.5 121.0
1973-74 57.2 58.8 60.7 63.6 66.8 70.3 1973-74 102.7 105.2 107.8 111.6 115.5 119.7
1974-75 59.5 61.8 64.1 66.1 68.2 70.4 1974-75 102.7 104.9 107.1 110.4 113.8 117.5
1975-76 63.5 64.5 65.3 66.9 68.7 70.7 1975-76 106.2 109.7 112.8 116.8 120.9 125.2
1976-77 64.0 66.5 70.1 74.4 78.7 83.7 1976-77 106.9 109.4 112.9 117.2 121.5 126.5
1977-78 63.4 65.7 68.9 72.8 76.6 81.1 1977-78 106.9 109.1 112.4 116.2 120.1 124.6
1978-79 63.9 66.0 69.0 72.6 76.2 80.4 1978-79 106.9 109.0 112.0 115.6 119.2 123.4
1979-80 63.2 65.1 67.9 71.2 74.5 78.4 1979-80 106.3 108.3 111.0 114.4 117.7 121.5
1980-81 63.6 65.3 67.7 70.6 73.6 77.0 1980-81 107.5 109.2 111.7 114.6 117.5 120.9
1981-82 62.4 63.9 66.1 69.3 72.6 76.3 1981-82 106.9 108.4 110.5 113.8 117.0 120.8
1982-83 61.2 64.6 67.8 72.0 76.1 80.8 1982-83 106.1 108.9 111.5 114.9 118.4 122.4
1983-84 60.3 67.5 74.2 81.4 88.5 96.2 1983-84 105.6 108.9 111.5 114.7 117.9 121.6
1984-85 60.4 67.8 74.7 82.1 89.5 97.3 1984-85 105.3 108.3 110.8 113.7 116.7 120.2
1985-86 60.9 68.5 75.7 83.3 90.9 99.0 1985-86 105.0 107.9 110.2 113.0 115.9 119.2
TABLE F4.ll: DISPOSABLE INCOMES RELATIVE TO THOSE OF A TABLE F4\.12: DISPOSABLE INCOMES RELATIVE TO THOSE OF A
1964-65 TO 1985-86 1964-65 TO 1985-86
% % % % % % % % "% % % %
1964-65 182.2 186.4 190.7 196.1 201.4 206.7 1964-65 56.1 57.8 60.4 64.2 67.5 70.9
1965-66 181.1 185.2 189.4 194.7 200.1 205.3 1965-66 56.5 58.2 60.8 64.5 67.7 70.9
1966-67 180.2 184.2 188.2 193.3 198.3 203.4 1966-67 56.8 58.5 61.0 64.3 67.7 70.8
1967-68 179.6 183.8 188.2 193.6 199.1 204.9 1967-68 57.1 58.8 61.3 64.5 68.0 71.6
1968-69 178.6 182.8 186.9 192.0 197.5 203.4 1968-69 57.5 59.2 61.6 64.7 68.2 71.9
1969-70 177.5 181.4 185.5 190.3 195.6 201.2 1969-70 58.0 59.7 61.9 64.9 68.2 71.8
1970-71 179.0 182.4 185.9 190.2 194.8 199.8 1970-71 57.6 59.1 61.1 63.8 66.8 70.2
1971-72 177.4 180.7 184.0 188.6 193.5 198.8 1971-72 58.4 59.8 61.8 64.8 68.2 71.8
1972-73 178.1 181.6 185.1 189.9 195.0 200.3 1972-73 58.9 . 60.2 63.1 65.7 68.5 71.7
1973-74 176.0 179.3 182.6 187.1 191.8 196.8 1973-74 59.2 60.5 62.1 65.6 68.1 70.9
102.
1974-75 165.0 167.9 170.8 174.6 178.6 182.9 1974-75 60.7 62.7 63.6 65.4 67.4 69.7
1975-76 177.0 180.5 183.6 187.5 191.7 196.0 1975-76 64.1 64.5 65.3 66.9 68.7 70.7
1976-77 177.6 180.1 183.7 188.0 192.2 197.2 1976-77 64.0 66.5 70.1 74.4 78.7 83.7
1977-78 182.5 184.7 187.9 191.8 195.7 200.2 1977-78 63.4 65.7 68.9 72.8 76.6 81.1
1978-79 182.9 185.0 188.0 191.6 195.2 199.4 1978-79 63.9 66.0 69.0 72.6 76.2 80.4
1979-80 181.2 183.2 185.9 189.3 192.6 196.4 1979-80 64.5 66.4 69.2 72.5 75.8 79.7
1980-81 181.8 183.5 186.0 188.9 191.8 195.2 1980-81 64.6 66.3 68.8 71.7 74.6 78.0
1981-82 179.9 181.4 183.6 186.8 190.0 193.8 1981-82 64.9 66.4 68.5 71.7 75.0 78.7
1982-83 177.8 180.5 183.1 186.6 190.0 194.1 1982-83 63.2 66.6 69.8 73.9 78.1 82.8
1983-84 173.8 177.0 179.7 182.9 186.0 189.8 1983-84 62.4 69.3 76.0 83.1 90.3 98.0
1984-85 169.6 172.6 175.1 178.1 181.0 184.5 1984-85 62.0 68.7 75.6 83.0 90.4 98.2
1985-86 167.6 170.5 172.9 175.7 178.5 181.8 1985-86 62.4 69.0 76.1 83.7 91.3 99.4
1964-65 TO 1985-86 1964-65 TO 1985-86
1964-65 107.1 109.5 112.5 116.7 120.7 124.7 1964-65 199.1 202.4 206.2 211.0 215.7 220.4
1965-66 107.7 110.0 113.0 117.0 121.0 124.9 1965-66 199.0 202.4 206.1 210.8 215.5 220.1
1966-67 108.1 110.4 113.3 117.2 120.9 124.7 1966-67 199.1 202.3 205.9 210.5 215.0 219.4
1967-68 108.4 110.8 113.8 117.6 121.7 126.1 1967-68 198.9 202.4 206.1 210.8 215.8 221.0
1968-69 108.9 111.3 114.1 117.8 121.9 126.3 1968-69 198.9 202.4 206.0 210.5 215.4 220.7
1969-70 109.4 111.8 114.6 118.1 122.0 126.2 1969-70 198.8 202.1 205.7 210.0 214.7 219.8
1970-71 109.0 111.1 113.5 116.7 120.2 124.0 1970-71 199.0 201.9 204.9 208.8 212.9 217.5
1971-72 110.0 112.0 114.4 117.9 121.7 125.8 1971-72 199.2 201.9 204.9 209.0 213.5 218.3
1972-73 109.5 111.5 113.8 117.3 121.1 125.1 1972-73 199.2 202.1 205.1 209.4 214.0 218.8
103.
1973-74 110.7 112.6 114.8 118.0 121.4 125.1 1973-74 199.2 201.8 204.7 208.6 212.8 217.2
1974-75 113.5 115.7 118.1 121.3 124.8 128.5 1974-75 198.1 200.7 203.3 206.9 210.5 214.3
1975-76 114.6 118.1 121.2 125.2 129.3 131.5 1975-76 200.0 203.5 206.6 210.6 214.7 219.0
1976-77 114.6 117.1 120.6 124.9 129.2 134.2 1976-77 200.0 202.5 206.1 210.3 214.6 219.6
1977-78 114.7 116.9 120.1 124.0 127.9 132.4 1977-78 200.0 202.3 205.5 209.3 213.2 217.7
1978-79 115.1 117.2 120.2 123.8 127.4 131.6 1978-79 200.0 202.1 205.1 208.7 212.3 216.5
1979-80 113.7 115.6 118.4 121.7 125.0 128.9 1979-80 200.0 201.9 204.7 208.0 211.3 215.2
1980-81 112.1 113.8 116.3 119.2 122.1 125.5 1980-81 200.0 201.7 204.1 207.1 210.0 213.4
1981-82 111.1 112.6 114.8 118.0 121.2 125.0 1981-82 198.8 200.3 202.5 205.7 208.9 212.7
1982-83 110.1 111.9 114.5 117.9 121.4 125.4 1982-83 197.6 199.4 202.0 205.5 208.9 212.9
1983-84 109.4 111.2 113.9 117.1 120.2 123.9 1983-84 196.3 198.2 200.8 204.0 207.2 210.9
1984-85 110.3 112.0 114.5 117.5 120.5 123.9 1984-85 196.7 198.5 201.0 203.9 206.9 210.4
1985-86 111.6 113.3 115.6 118.4 121.3 124.6 1985-86 197.9 199.5 201.9 204.7 207.5 210.8
DEVELOPMENT DIVISION: SERIES OF RESEARCH PAPERS
RESEARCH PAPER NO 1 UNEMPLOYMENT BENEFIT RECIPIENTS IN

AUSTRALIA. 1970-1980: AN ANALYSIS
(REVISED) (NOVEMBER 1981)
RESEARCH PAPER NO 2 REVIEW OF THE CHARACTERISTICS OF LONG-TERM

UNEMPLOYMENT BENEFIT RECIPIENTS IN
AUSTRALIA. 1970-1977 (NOVEMBER 1978)
RESEARCH PAPER NO 3 CHANGING FAMILY PATTERNS AND SOCIAL SECURITY

PROTECTION: THE AUSTRALIAN SCENE
(MARCH 1979)
RESEARCH PAPER NO 4 UNEMPLOYMENT STATISTICS IN AUSTRALIA

(JULY 1979)
RESEARCH PAPER NO 5 A REVIEW OF THE CHARACTERISTICS OF SOLE

PARENTS ASSISTED UNDER THE SOCIAL SERVICES
ACT (MARCH 1980)
RESEARCH PAPER NO 6 RESEARCH QUESTIONS ON INCOME SECURITY FOR

SOLE PARENTS (MARCH 1980)
RESEARCH PAPER NO 7 CHARACTERISTICS OF SOLE MOTHERS RECEIVING

STATE ASSISTANCE SUBSIDISED UNDER THE STATES
GRANTS (DESERTED WIVES) ACT (MARCH 1980)
RESEARCH PAPER NO 8 ADDITIONAL DATA REQUIREMENTS OF THE

DEPARTMENT OF SOCIAL SECURITY (APRIL 1980)
RESEARCH PAPER NO 9 THE RELATIONSHIP BETWEEN THE AUSTRALIAN

SOCIAL SECURITY AND PERSONAL INCOME TAXATION
SYSTEMS - A PRACTICAL EXAMINATION
(DECEMBER 1980)
RESEARCH PAPER NO 10 SURVEY OF INVALID PENSIONERS OCTOBER 1979:

DATA ON MAJOR CAUSES OF INVALIDITY AND ON
OTHER IMPAIRMENTS 2ND EDITION (OCTOBER 1981)
RESEARCH PAPER NO 11 THE FINANCE OF SOCIAL SECURITY: SOME

IMPLICATIONS OF THE INTERACTION BETWEEN
SOCIAL SECURITY AND PERSONAL INCOME TAX
(DECEMBER 1980)
RESEARCH PAPER NO 12 WORK INCENTIVE EXPERIMENTS IN THE UNITED

STATES AND CANADA (JUNE 1981)
RESEARCH PAPER NO 13 WORK TEST FAILURE - A SAMPLE SURVEY OF

TERMINATIONS OF UNEMPLOYMENT BENEFIT
(JUNE 1981)
RESEARCH PAPER NO 14 STATISTICS ON THE DISTRIBUTION OF INCOME AND

WEALTH IN AUSTRALIA (OCTOBER 1981)
RESEARCH PAPER NO 15 POPULATION PROJECTIONS AND SOCIAL SECURITY

(NOVEMBER 1981)
RESEARCH PAPER NO 16 AS HIS WIFE: SOCIAL SECURITY LAW AND POLICY

ON DE FACTO MARRIAGE (DECEMBER 1981)
RESEARCH PAPER NO 17 TAXATION EXPENDITURES: SUBMISSION BY THE
DEPARTMENT OF SOCIAL SECURITY TO THE INQUIRY
INTO TAXATION EXPENDITURES BY THE HOUSE OF
REPRESENTATIVES STANDING COMMITTEE ON
EXPENDITURE (MARCH 1982)
RESEARCH PAPER NO 18 SOLE PARENTS ON PENSIONS: A SAMPLE SURVEY

OF CLASS 'A' WIDOW PENSIONERS AND SUPPORTING
PARENT BENEFICIARIES (JUNE 1982)
RESEARCH PAPER NO 19 FINANCING SOCIAL SECURITY: AN ANALYSIS OF
THE CONTRIBUTORY 'SOCIAL INSURANCE' APPROACH
(JUNE 1982)
RESEARCH PAPER NO 20 DEVELOPMENTS IN SOCIAL SECURITY: A
COMPENDIUM OF LEGISLATIVE CHANGES SINCE 1908
(JUNE 1983)
RESEARCH PAPER NO 21 SURVEY OF MORBIDITY CHARACTERISTICS OF

CHILDREN RECEIVING HANDICAPPED CHILD'S
ALLOWANCE, 14 MARCH 1982 (DECEMBER 1983)
RESEARCH PAPER NO 22 SOME IMPLICATIONS OF THE INTERACTION OF THE

PERSONAL INCOME TAXATION AND SOCIAL SECURITY
SYSTEMS (MARCH 1984)
RESEARCH PAPER NO 23 PERMANENT INCAPACITY: INVALID PENSION IN

AUSTRALIA (APRIL 1984)
RESEARCH PAPER NO 24 GOVERNMENT SUPPORT OF RETIREMENT INCOMES IN

AUSTRALIA (APRIL 1984)
RESEARCH PAPER NO 25 THE ECONOMIC AND SOCIAL CIRCUMSTANCES OF THE

AGED (APRIL 1984)
RESEARCH PAPER NO 26 RETIREMENT INCOME PROVISIONS OVERSEAS
(APRIL 1984)
RESEARCH PAPER NO 27 A FAMILY'S NEEDS: EQUIVALENCE SCALES.
POVERTY AND SOCIAL SECURITY (APRIL 1985)
RESEARCH PAPER NO 28 EQUITY, TAX REFORM AND REDISTRIBUTION
(APRIL 1985)
RESEARCH PAPER NO 29 ISSUES IN ASSISTANCE FOR FAMILIES -
HORIZONTAL AND VERTICAL EQUITY
CONSIDERATIONS (AUGUST 1986)
RESEARCH PAPER NO 30 THE 'GREATEST ASSET SINCE CHILD ENDOWMENT'?:

A STUDY OF LOW-INCOME WORKING FAMILIES
RECEIVING FAMILY INCOME SUPPLEMENT
(NOVEMBER 1986)
RESEARCH PAPER NO 31 TRENDS IN THE DISPOSABLE INCOMES OF

AUSTRALIAN FAMILIES. 1964-65 TO 1985-86
(DECEMBER 1986)
RESEARCH PAPER NO 32 OVERSEAS COUNTRIES' MAINTENANCE PROVISIONS

(DECEMBER 1986)
RESEARCH PAPER NO 33 OVERSEAS COUNTRIES' ASSISTANCE TO SOLE

PARENTS (DECEMBER 1986)
SOCIAL SECURITY REVIEW
BACKGROUND AND DISCUSSION PAPERS SERIES
NO 1 D Cass, The Case for Review of Aspects of the

Australian Social Security System, June 1986
No 2 0 Donald, Social Security Reform, June 1986
No 3 K Ogborn, Social Security and the Labour Force -

Looking Ahead, June 1986
No 4 A Harding, Assistance for Families with Children and

the Social Security Review, June 1986
No 5 P Whiteford, Issues in Assistance for Families -

Horizontal and Vertical Equity Considerations, August
1986
No 6 K Ogborn, Workfare in America: An Initial Guide to

the Debate, August 1986
No 7 H Johnstone, Older Unemployed People in the Illawarra

Region, New South Wales, October 1986
NO 8 Labour Force Status and Other Characteristics of Sole

Parents: 1974-1985, September 1986
No 9 Jocelyn Pech, The 'Greatest Asset Since Child

Endowment'?: A Study of Low-Income Working Families
Receiving Family Income Supplement, November 1986
No 10 Judi Robinson and Bob Griffiths, Australian Families:

Current Situation and Trends: 1969-1985, November 1986
No 11 Jim Moore and Peter Whiteford, Trends in the
Disposable Incomes of Austrialian Families, 1964-65 to
1985-86, December 1986

Policy Research Paper No 31

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The Social Security Review

Background/Discussion Paper No. 11

Trends in the Disposable Incomes of

Social Security Review

Jim Moore and Peter Whiteford

Research Paper No. 31

The authors would like to thank Deborah Atkinson for her

2.1 Changes in the Social Security System 3

3 TRENDS IN REAL DISPOSABLE INCOMES , 17

3.1 Income Components 19

4 SCHEDULED CHANGES FOR 1986-87 AND 1987-88 32

A SOCIAL SECURITY OUTLAYS AND NUMBERS OF RECIPIENTS , 41

The paper undertakes an analysis of trends in disposable

This paper presents an examination of changes over time in the

Put rather simply, the disposable incomes of individuals and

gross private income - from, for example. wages and

Trends in the real disposable incomes of individuals and

2.1 Changes in the Social Security System

increases in rates and introduction of automatic indexation

numerous changes in the pensions' means/income test and in

Rates of Pensions and Benefits

Means and Income Tests

Taxation of Pensions and Benefits

However these changes are interpreted, what cannot be denied is

2.2 Changes in the Personal Income Tax System

Like the social security system. the taxation system has

The increase in tax burdens is revealed in the increasing share

Of most interest in the context of this paper is the growing

In 1975-76 a general concessional rebate was introduced. This,

Marginal Rate Structure

1970-71 - The number of tax brackets was reduced to 28 and the

1974-75 - The number of brackets was reduced to 14 and marginal

Deductions/Rebates for Dependants

The quantitative effects of the policy changes described

3.1 Income Components

Average Annual Change 1964-65 to 1985-86

Harried Rate of:

3.2 Taxation Components

Average Annual Change 1964-65 to 1985-86

TABLE 3.3: Change in Real Values of Tax Deductions/Rebates* - 1964-65 TO 1985-86

Average Annual Change 1964-65 to 1985-86

Dep. Children of:

Average Annual Change 1964-65 to 1985-86

The real value of child endowment fell further between 1969-70

Average Annual Change 1964-65 to 1985-86

TABLE 3.3: Change in Real Values of Tax Deductions/Rebates* - 1964-65 TO 1985-86

Average Annual Change 1964-65 to 1985-86

Average Annual Change 1964-65 to 1985-86

ONE INCOME COUPLE

3.3 Changes in Real Disposable Incomes

Pensioners and Beneficiaries

Average Annual Change 1964-65 to 1985-86

In the period 1976-77 to 1982-83 the real disposable incomes of

However, comparing the positions of pensioners and

Wage and Salary Earners

Average Annual Change 1964-65 to 1985-86

* Assumes families with children receive FIS in relevant years

Proportion of Disposable Average Annual

3.4 Summary of Trends

This analysis of trends in the real disposable incomes of

Average Annual Change 1964-65 to 1985-86

Proportion of Disposable Average Annual